Yes, it's true. It is patent number 4197590.
It was filed in 1978, so fortunately it has expired.
Before it had expired, yes technically you would be breaking the law by implementing the system - however, if you can show "prior art" (Which is when you can demonstrate that the idea was general public knowledge before the patent was logged) you could potentially get the patent overruled.
(As others have also pointed out, you can't go to jail for patent infringement, but you can be sued and required to pay a portion of your profits that resulted from the infringement to the company that owns the patent in compensation for their loss from your infringement)