Earlier this month a federal appeals court decided that an employee "acted without authorization" after he used a former co-worker's password login without their permission, in order to gain access to a collection of their data. Concerning the case The United States of America v. David Nosal, this has led to a decision by the court to rule that password sharing is a federal crime under the Computer Fraud and Abuse Act, meaning that sharing your login among friends and family for accounts like Netflix and HBO Go could now be an illegal act (via TechCrunch).

Judge McKeown, who is close to the case and wrote its opinion, admitted that more innocent forms of password sharing "bears little resemblance" to the circumstances presented in the lawsuit that ignited the ruling. McKeown urged future judges and courts to consider how important "facts and context" are to each case, and craft rulings surrounding password-sharing lawsuits and their legality from there.

netflix2.jpg
While the daily sharing of passwords has yet to be designated as a violation of federal law, some do see the new ruling as a slippery slope to a future where giving a friend your HBO Go login could land you in a heap of trouble. Judge Reinhardt took the dissenting opinion on the case, commenting that while David Nosal may have gotten into "criminal or civil" liabilities while logging into his co-worker's accounts, "he has not violated the CFAA."

This case is about password sharing. People frequently share their passwords, notwithstanding the fact that websites and employers have policies prohibiting it. In my view, the Computer Fraud and Abuse Act (“CFAA”) does not make the millions of people who engage in this ubiquitous, useful, and generally harmless conduct into unwitting federal criminals. Whatever other liability, criminal or civil, Nosal may have incurred in his improper attempt to compete with his former employer, he has not violated the CFAA. — Judge Stephen Reinhardt, Ninth Circuit Court of Appeals

An act so widely perpetrated is far less likely to incur major legal repercussions, even if it does become enacted on more of a wider scale, but there is still a possibility for the federal appeals court's decision to let companies decide on their own whether password sharing should be more strictly reprimanded or not. Comments by Netflix earlier this year at CES suggest the company won't be heading in that direction any time soon, as CEO Reed Hastings saw the expansive sharing of their services as "a positive thing."

Top Rated Comments

Glassed Silver Avatar
110 months ago
That law shows very well how lobbying works under the radar.
Ah, it's just there to protect you! Except, when you actively share a password, at worst you're stupid, but at best it's intentional and with someone you trust with whatever the password unlocks.

Thank companies like Netflix for this mess existing.
This has nothing to do with security.
Might as well ban lending your car.
I mean, they could open the trunk with the key!!!! And who knows what you put in there!!!

Glassed Silver:mac
Score: 6 Votes (Like | Disagree)
oneMadRssn Avatar
110 months ago
Good. If you share your details for a streaming service or online game then you are committing fraud. Plain and simple.
What fraud? At very worst it's a simple breach of contract.
Score: 6 Votes (Like | Disagree)
oneMadRssn Avatar
110 months ago
If you and some buddies, who aren't family, sign up for Spotify and split the family plan pricing between you, then it's fraud. Your intent is to avoid paying for a single user subscription by "pretending" you're family and at the same address.
First, what you described would be against Spotify's Family Plan Terms and Conditions. This is a contract of adhesion essentially, and on point it only says "All account holders must reside at the same address to be eligible for the Spotify Family Plan." So it doesn't actually define family, nor require any lineal or blood relationship. In theory, a bunch of guys living in a frat house with a Spotify family account would not be a breach of this contract. Interestingly, Spotify's larger general Terms and Conditions do not address this at all.

Either way, if people were to do what you described above, it would be a violation of this contract. Spotify's Terms and Conditions discuss breach in a few sections. So Spotify does contemplate and foresee that some users will breach the contract. Should Spotify want, when they become aware of this breach, they can do a number of things including cancelling the contract and deleting the account. This is, simply, a breach of contract. Nothing more. As a party to a contract, you are allowed to breach it and suffer the consequences.

Second, your example fails as it isn't even an example of sharing login information. With Spotify family, each user uses their own login and password and otherwise keeps a wholly separate account. Being in the family plan just means one of the users is responsible for billing.
Score: 4 Votes (Like | Disagree)
lederermc Avatar
110 months ago
The fact that Netflix allows multiple Queues/profiles is a clue that sharing a Netflix password is sanctioned. The media is negligent in spewing this garbage.
Score: 4 Votes (Like | Disagree)
JRobinsonJr Avatar
110 months ago
Really silly. Says a lot about how in America, it's all about the money at the expense of loss of personal freedom/decision.
Good. If you share your details for a streaming service or online game then you are committing fraud. Plain and simple.
I don't see this as either extreme. The reality is that some services (eg. cable ID based) are intended and priced for a single user/household, and it is not unreasonable for the provider to ask that you not expand usage beyond that audience. Other services (eg. Netflix) are priced for multiple users and can be used in that context. For example, I pay for the 4-stream 'family' plan on Netflix, and have no problem sharing that login within the family. Either way it is both reasonable and fair for the providers to ask that you respect the intent.
Score: 4 Votes (Like | Disagree)
12vElectronics Avatar
110 months ago
I think this type of court case will never affect Netflix/Hulu etc.
Score: 3 Votes (Like | Disagree)

Popular Stories

New Things Your iPhone Can Do in iOS 18

20 New Things Your iPhone Can Do in iOS 18.2

Monday December 16, 2024 8:55 am PST by
Apple released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
iphone 16 apple intelligence

Apple Drops Plans for iPhone Hardware Subscription Service

Wednesday December 18, 2024 11:39 am PST by
Apple is no longer planning to launch a hardware subscription service that would let customers "subscribe" to get a new iPhone each year, reports Bloomberg's Mark Gurman. Gurman first shared rumors about Apple's work on a hardware subscription service back in 2022, and at the time, he said that Apple wanted to develop a simple system that would allow customers to pay a monthly fee to gain...
iPhone 17 Slim Feature Single Camera 2 Redux

Top 5 Apple Products to Look Forward to in 2025

Friday December 20, 2024 2:22 pm PST by
It's looking like 2025 is going to be an important year for Apple, with the company planning to revamp the iPhone, push further into smart home products, and improve Apple Intelligence. There are tons of new products rumored for 2025, including new iPhones, M4 Macs, a smart home command center, and much more. We've highlighted the top five Apple products that will have the biggest impact in...
mac pro creativity

Apple Launched the Controversial 'Trashcan' Mac Pro 11 Years Ago Today

Thursday December 19, 2024 7:00 pm PST by
Apple launched the controversial "trashcan" Mac Pro eleven years ago today, introducing one of its most criticized designs that persisted through a period of widespread discontentment with the Mac lineup. The redesign took the Mac Pro in an entirely new direction, spearheaded by a polished aluminum cylindrical design that became unofficially dubbed the "trashcan" in the Mac community. All of ...
blackmagic vision pro

Blackmagic Debuts $30K 3D Camera for Capturing Video for Vision Pro

Monday December 16, 2024 4:17 pm PST by
Blackmagic today announced that its URSA Cine Immersive camera is now available for pre-order, with deliveries set to start late in the first quarter of 2025. Blackmagic says that this is the world's first commercial camera system designed to capture 3D content for the Vision Pro. The URSA Cine Immersive camera was first introduced in June, but it has not been available for purchase until...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Rumored to Stick With 'Triangular' Camera Design

Wednesday December 18, 2024 2:36 am PST by
Contrary to recent reports, the iPhone 17 Pro will not feature a horizontal camera layout, according to the leaker known as "Instant Digital." In a new post on Weibo, the leaker said that a source has confirmed that while the appearance of the back of the iPhone 17 Pro has indeed changed, the layout of the three cameras is "still triangular," rather than the "horizontal bar spread on the...
elevation lab airtag battery

Your AirTag's Battery Will Last for Up to 10 Years With Elevation Lab's New TimeCapsule Enclosure

Wednesday December 18, 2024 10:05 am PST by
Elevation Lab today announced the launch of TimeCapsule, an innovative and simple solution for increasing the battery life of Apple's AirTag. Priced at $20, TimeCapsule is an AirTag enclosure that houses two AA batteries that offer 14x more battery capacity than the CR2032 battery that the AirTag runs on. It works by attaching the AirTag's upper housing to the built-in custom contact in the...