You could face jail time for sharing your Netflix password

Updated
Appeals Court Ruling May Criminalize Sharing Netflix Passwords
Appeals Court Ruling May Criminalize Sharing Netflix Passwords

Most Netflix subscribers are all guilty of it in at least some capacity: sharing your password for the streaming service with a family member, friend, or even friend of a friend.

In some ways, password sharing almost seems like a rite of passage. How could you let someone miss out on all those binge-worthy original series?

SEE ALSO: 5 ways to save on Netflix

But what's always been common practice has just been declared an act against the law – if you've ever shared your Netflix password, you could be guilty of committing a federal crime.

Yes, really.

The decision comes as a result of a federal court case in California (United States v. Nosal) in which a former Korn/Ferry International employee, David Nosal, was using a password from another Korn/Ferry employee (who was still employed with the company) to download information to use at his new job.

Nosal was charged under CFAA (Computer Fraud and Abuse Act) conspiracy, theft of trade secrets and three additional counts under the law.

He was sentenced to jail time, probation and just shy of $1M in fines and fees.

So what exactly does this have to do with Netflix passwords?

A look at the history of Netflix:

Nosal's sentencing was based off of a part of the CFAA that declares an action illegal if it involves any person who "knowingly and with intent to defraud, accesses a protected computer without authorization."

This clause (and the majority of the CFAA) is intended to primarily prevent security breaches and hacking.

By the court's ruling in Nosal's case, however, this means that US citizens are violating the CFAA every time they share a password to a subscription-based streaming service, be it Netflix, HBO Go, Hulu or any other variation (unless the service provider authorizes the sharing).

Three judges from the United States Court of Appeals voted in favor of Nosal's conviction.

But not all were in agreement, particularly Ninth Circuit judge Stephen Reinhardt:

"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."

Ninth Circuit judge Margaret McKeown also sided with Reinhardt, explaining that this case was more to do with the potential danger of accessing another's private information through password sharing, not so much about sharing passwords for leisure and convenience:

"...The circumstance here—former employees whose computer access was categorically revoked and who surreptitiously accessed data owned by their former employer—bears little resemblance to asking a spouse to log in to an email account to print a boarding pass."

Though this case may be a one-off situation in which password sharing is deemed illegal, it sets the ground for potential trouble ahead for those in sticky situations where password sharing is involved.

Our final verdict? Don't expect to be taken in to custody for giving your password to your old college roommate.

Keep doing you, password moochers.

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