Court Ruling Could Lead to Stricter Password-Sharing Laws in the Future - MacRumors
Skip to Content

Court Ruling Could Lead to Stricter Password-Sharing Laws in the Future

by

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

oneMadRssn Avatar
135 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)
Glassed Silver Avatar
135 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)
lederermc Avatar
135 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)
oneMadRssn Avatar
135 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)
JRobinsonJr Avatar
135 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
135 months ago
I think this type of court case will never affect Netflix/Hulu etc.
Score: 3 Votes (Like | Disagree)

Popular Stories

apple pro tell logo

Apple Launching Five New Products This Friday

Monday November 2, 2026 1:22 am PST by
Apple is releasing five new products this Friday, November 6, following pre-orders that opened last week, including its first touchscreen MacBook Pro models. The following new products will be available from Friday: iPad mini with OLED display and A20 Pro chip iMac with M6 chip 14-inch MacBook Pro with M6 chip 14-inch MacBook Pro with OLED touchscreen 16-inch MacBook Pro with OLED...
Apple Logo Gradient 16x9 1

Apple Isn't Done With 2026: Here's What's Still Coming

Monday November 2, 2026 7:27 am PST by
Apple's busiest season isn't over yet. Far from it. With two hardware launch dates still to come in November, plus software updates and new smart home accessories running into December, there's more on the way from Apple before the end of 2026, so be sure to stick around. Below, we've rounded up what's still coming, along with one date in particular that's worth watching if you're a holiday...
iPad Pro 2024 vs Air 2024 Feature

Three New iPads Rumored to Launch in First Half of 2027

Sunday November 1, 2026 7:27 am PST by
After announcing a new iPad mini with an OLED display earlier this month, Apple plans to release new iPad Air, iPad Pro, and entry-level iPad models in the first half of 2027, according to the latest word from Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said the next iPad Air will also feature an OLED display, while he expects the next iPad Pro to be equipped with a...
Latest Stories
Everything New in the iOS 27.3 Beta
Everything New in the iOS 27.3 Beta
8 hours ago
Apple Music's New Selfie Sing Feature Lets You Record Karaoke Videos
Apple Music's New Selfie Sing Feature Lets You Record Karaoke Videos
9 hours ago
iPhone Jailbreak Gets Past Lockdown Mode and Survives an Update
iPhone Jailbreak Gets Past Lockdown Mode and Survives an Update
11 hours ago
iPadOS 27.3 Expands Siri Mode to Camera App
iPadOS 27.3 Expands Siri Mode to Camera App
12 hours ago
Veterans Day Apple Watch Activity Challenge Launches November 11
Veterans Day Apple Watch Activity Challenge Launches November 11
13 hours ago
Best Early Black Friday Mac Deals: Save Hundreds on MacBook Air, Mac Mini, and More
Best Early Black Friday Mac Deals: Save Hundreds on MacBook Air, Mac Mini, and More
13 hours ago
Apple Fitness+ Gets Gym Strength Plans in iOS 27.3
Apple Fitness+ Gets Gym Strength Plans in iOS 27.3
14 hours ago
iOS 27.3 Adding New StandBy Mode Features to iPhone 11 and Newer
iOS 27.3 Adding New StandBy Mode Features to iPhone 11 and Newer
14 hours ago
Apple Releases New AirPods Beta Firmware
Apple Releases New AirPods Beta Firmware
14 hours ago
iOS 27.3 Beta Brings Apple Intelligence to China
iOS 27.3 Beta Brings Apple Intelligence to China
14 hours ago
iPhone Duo Gets Reachability in iOS 27.3 Beta
iPhone Duo Gets Reachability in iOS 27.3 Beta
14 hours ago
Siri AI Gets More Capable in iOS 27.3
Siri AI Gets More Capable in iOS 27.3
14 hours ago
iOS 27.3 Adds Vertical Tabs and Adaptive Dark Mode to Safari
iOS 27.3 Adds Vertical Tabs and Adaptive Dark Mode to Safari
14 hours ago
watchOS 27.3 Brings Live Rewind and Siri Recap to Apple Watch
watchOS 27.3 Brings Live Rewind and Siri Recap to Apple Watch
15 hours ago
iOS 27.3 Beta Brings Back Apple's Redesigned Health App
iOS 27.3 Beta Brings Back Apple's Redesigned Health App
15 hours ago
Apple Releases First macOS Golden Gate 27.3 Beta
Apple Releases First macOS Golden Gate 27.3 Beta
15 hours ago
Apple Seeds First iOS 27.3 Beta
Apple Seeds First iOS 27.3 Beta
15 hours ago
Apple Releases First watchOS 27.3, tvOS 27.3 and visionOS 27.3 Betas
Apple Releases First watchOS 27.3, tvOS 27.3 and visionOS 27.3 Betas
15 hours ago
iPad Mini 8 Reviewer Dissatisfied With Apple's Excuse for Lack of 120Hz Display
iPad Mini 8 Reviewer Dissatisfied With Apple's Excuse for Lack of 120Hz Display
15 hours ago
iPad Mini 8 Review Claims Battery Life is Way Better Than Apple Says
iPad Mini 8 Review Claims Battery Life is Way Better Than Apple Says
16 hours ago
B&H Photo Launches Early Black Friday Sale With Discounts on Macs and Accessories
B&H Photo Launches Early Black Friday Sale With Discounts on Macs and Accessories
16 hours ago
iPhone Duo Could Take Nearly 30% of Foldable Market in 2027
iPhone Duo Could Take Nearly 30% of Foldable Market in 2027
16 hours ago
Apple Watch Automatically Identifies Songs Playing Around You
Apple Watch Automatically Identifies Songs Playing Around You
17 hours ago
iPhone 18 Rumored to Get Larger Battery and Potential Price Increase
iPhone 18 Rumored to Get Larger Battery and Potential Price Increase
17 hours ago
Apple Store in UK Permanently Closing Later This Month
Apple Store in UK Permanently Closing Later This Month
18 hours ago
Apple's Annual R&D Spending Jumps by More Than $11 Billion
Apple's Annual R&D Spending Jumps by More Than $11 Billion
19 hours ago
Will Apple Ever Merge iPadOS and macOS? John Ternus Responds
Will Apple Ever Merge iPadOS and macOS? John Ternus Responds
19 hours ago
MacBook Neo Gets Rare $30 Amazon Discount
MacBook Neo Gets Rare $30 Amazon Discount
19 hours ago
Hands-On: The OLED iPad Mini is Almost an iPad Pro Mini
Hands-On: The OLED iPad Mini is Almost an iPad Pro Mini
19 hours ago
tvOS 27.2.1 and macOS 27.2.1 Likely Coming Soon
tvOS 27.2.1 and macOS 27.2.1 Likely Coming Soon
20 hours ago