Tennessee Signs Law Prohibiting Netflix Password Sharing

Tennessee state legislators have passed a bill that would make it illegal to use a friend’s login on music or video services like Netflix and Rhapsody, according to The Tennessean.

TN Governor Bill Haslam has signed the bill, which goes into effect July 1. The purpose of the measure is to target hackers who sell passwords online, hopefully slowing the losses incurred by illegal sharing.

The article states that people who share a subscription account with a spouse or family members in one household likely have no worries. Rather, it is the heavy duty offenders—such as college students giving their info to an entire dorm floor—that may face prosecution.

So far Tennessee is the only state in the U.S. with legislation addressing changes in consumer content delivery. Under the law, violators stealing $500 or less of entertainment would be charged with misdemeanor punishable by up to a year in jail and a $2500 fine. Larger infractions would be a felony with taller penalties. A federal law might be on the way, according to the RIAA.