I've not looked into this in great detail myself, but I believe this physics suggests this could be as simple as a spinning metal (conductive) disk with a permanent magnet at an adjustable distance to the spinning disk. It sounds like you understand how it works, but are perhaps looking for the catch? I don't believe there is one... Note this works only as brake - however if you want the same phenomenon to work as a motor you are looking at a squirrel cage motor (http://en.wikipedia.org/wiki/Induction_motor).
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