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Tennessee Passes Law Criminalizing Netflix Password-Sharing

Tennessee lawmakers have passed a law, since signed by the state’s governor, which would make it a crime to use a friend’s password to login to Netflix, MOG, or a similar web-based media consumption service, even with that friend’s permission. Why Tennessee? Because Nashville is the capital not only of the state, but of the country music industry, which, like the broader music industry, is worried about revenue loss from illegal file-sharing. The law passed has the support of the country music industry and the RIAA.

While the law isn’t specifically aimed at the practice of friendly password-sharing — lawmakers say its target is ‘hackers and thieves who sell passwords in bulk’ — they acknowledge that it would apply to Netflix password-pooling. And the penalties aren’t nothing: “Stealing $500 or less of entertainment would be a misdemeanor punishable by up to a year in jail and a fine of $2,500.”

The likelihood of small-scale detection may be another matter, however:

Bill Ramsey, a Nashville lawyer who practices both entertainment law and criminal defense, said that he doubts the law would be used to ban people in the same household from sharing subscriptions, and that small-scale violations involving a few people would, in any case, be difficult to detect. But “when you start going north of 10 people, a prosecutor might look and say, `Hey, you knew it was stealing,’” Ramsey said.

(via AP)

  • Citizen

    Just like torrents, if you’re an ass about it, you’re going to get caught. 

    The penalty is pretty heavy (ie, affective deterrent), but according to Netflix Terms of Use, you can’t give out your password. The service is rendered to you, the one actually paying. 

    Why do people break the rules and then cry about penalties when they get caught? It’s $8/month. You can easily afford it, the only people who can be hit by this law are the people selling/distributing your password. Until they start cracking down on 10-year-olds using their parent’s account, this a total non-issue.

  • Anti-Citizen

    “It’s $8/month. You can easily afford it”

    Right, thanks for making sweeping generalizations about the financial capabilities of…everyone. LOL.

    Anyway, what if I am logged-in on the myriad of devices (AUTO LOGGED IN!) and my wife, children, brother, nephew, friend, dog happen to go to netflix on one of those devices (PC, Playstation, DLNA Server, iPad, MY ANDROID PHONE!). This law is cannot be enforced in any shape or form.  It’s a waste.

  • Citizen

    Anyone with a game console or a computer w/ internet can afford $8/month for unlimited movies. It isn’t a sweeping generalization – it’s common sense, you tool. And a practicing lawyer has already said this won’t likely be applied to kids using their parent’s account. Regardless of their methods of detecting bulk selling/trading, this is still a non-issue.

    And nice handle, I’m glad to be the antithesis of stupid. LOL.

  • Anonymous

    You’re right, because the RIAA would NEVER sue someone like a 65yo grandmother or average users who have only shared a few songs. Your last statement would be funny if you were right.

    Google RIAA sues grandmother and see what you’ve missed over the last decade lol.  FYI, the story about the deceased grandmother being sued was great for a laugh.

  • Anonymous

    You’re right, because the RIAA would NEVER sue someone like a 65yo grandmother or average users who have only shared a few songs. Your last statement would be funny if you were right.

    Google RIAA sues grandmother and see what you’ve missed over the last decade lol.  FYI, the story about the deceased grandmother being sued was great for a laugh.

  • Anonymous

    You’re right, because the RIAA would NEVER sue someone like a 65yo grandmother or average users who have only shared a few songs. Your last statement would be funny if you were right.

    Google RIAA sues grandmother and see what you’ve missed over the last decade lol.  FYI, the story about the deceased grandmother being sued was great for a laugh.

  • Anonymous

    You’re right, because the RIAA would NEVER sue someone like a 65yo grandmother or average users who have only shared a few songs. Your last statement would be funny if you were right.

    Google RIAA sues grandmother and see what you’ve missed over the last decade lol.  FYI, the story about the deceased grandmother being sued was great for a laugh.

  • ToolTime

    Yeah, go ahead and resort to ad hominem fallacies.  Oh no, he’s calling me names across the internets!  Look, you just nitpicked “kids using the account” when my point is that ANYONE (I choose) can have access to ANY device I own and start streaming netflix instant.  Which means that netflix logins are ubiquitous.  It isn’t an email account or facebook profile.  That’s not how it used.  It’s paramount to the counter argument of this law.  The way people USE netflix is not congruent withthe spirit of this bill.

    oh and piss up a rope.

  • Citizen

    I never said that. So you’re saying that the RIAA is going to come after the children because they use their parent’s Netflix password? Did you mean MPAA?

    Oh, I understand now. I was talking about Netflix – the topic at hand. You’re interpreting my objection to the significance of this story as defense of RIAA, which actually has nothing to do with shared Netflix passwords. 

    I’m fully aware of the unethical behavior of RIAA, but if you’re going to rebuke my post, at the very least actually read it, not read into it. Otherwise, you and I would likely be in agreeance.

    If you get busted for sharing your Netflix password, it’s because you were handing it out like Kool-aid in Jonestown. If you agree to a Terms of Use and violate said ToU, you can’t cry victim when the hammer comes down.

  • Anonymous

    For someone telling another person to discuss ‘the topic at hand’ you really need to heed your own advice.

    “Why Tennessee? Because Nashville is the capital not only of the state,
    but of the country music industry, which, like the broader music
    industry, is worried about revenue loss from illegal file-sharing. The
    law passed has the support of the country music industry and the RIAA.”

    Also, the law isn’t solely about Netflix but rather one of many services.

    My point is don’t be so naive to thing this law won’t be abused. RIAA, MPAA, whoever, sees this as an opening to sue and if history shows anything that they won’t use discression or common sense all the time. Notice the vagueness used by the lawyer quoted at the end, ‘probably’. If legislators had a shred of intelligence they would have at least added limitations of some sort or not passed it at all. I’m not making excuses for those flagrantly violating copyright laws by sharing music/movies on larger scales, but this has stupid written all over it and there is more than enough proof to show these POS industries can be just as criminal as those they claim to go after.

  • Citizen

    Well I thought the kid example was better than your dog example…

    Anyway, if you refer to the Netflix ToU, you’ll find that it opens up use for household members. This includes your dog… I guess. If your device is logged in, it doesn’t matter who views the content. The illegality in the ToU, as well as this law, is DISTRIBUTING your password. You know, letting people circumvent paying for the service by piggybacking off of yours?

    But I tell you what, when you get dragged into court when you were legally sharing your service with an authorized viewer (by Netflix ToU terms, of course), you come tell me. Otherwise, read what you signed up for. Don’t help people steal content that you paid for (which is cheap enough for them to buy). And be sure to brush your teeth at least twice a day!.

    And yeah, this is still a non-issue. Get over it already.

  • http://www.facebook.com/amedeus8 Nick Gotshall

    Unless they’re already using that money. You know, to buy game consoles and Internet. Shit’s not cheap.

  • http://www.facebook.com/amedeus8 Nick Gotshall

    “Stealing $500 or less of entertainment”

    What? Entertainment isn’t a physical thing. Media is. I hold that this isn’t legally binding, because you can’t steal concepts.

  • Citizen

    The whole “I’m too poor to spend $8/month on unlimited, streaming movies because I spent all my money on game consoles, games, internet, electricity and other expensive shit” doesn’t hold up in a court. 

    What is $8? It’s 1/5th of a video game. 1/5th of a gas fill up. It can buy you 2 3-day rentals at blockbuster. It’s lunch for a day. It isn’t cost prohibitive and it never has been. What is a “fair” price? You really have to come up with a better excuse to justify stealing movies.

    I’ve never understood why people are so supportive and defensive about stealing. You validate the litigious endeavors of the RIAA/MPAA when you continue to steal when it’s so easy and affordable not to. As quoted from one of the 90′s worst movies, “STOP BREAKING THE LAW, ASSHOLE!”


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