Nonstopdrivel
14 years ago

Netflix sharing will be a crime in TN 
Bill targets those who pass out passwords like candy
11:40 AM, Jun. 2, 2011

Written by
Sheila Burke and Lucas L. Johnson II | Associated Press


State lawmakers in country music’s capital have passed a groundbreaking measure that would make it a crime to use a friend’s login — even with permission — to listen to songs or watch movies from services such as Netflix and Rhapsody.

The bill, which has been signed by Gov. Bill Haslam and takes effect July 1, was pushed by recording industry officials to try to stop the loss of billions of dollars to illegal music sharing. They hope other states will follow.

The legislation was aimed at hackers and thieves who sell passwords in bulk, but its sponsors acknowledge it could be employed against people who use a friend’s or relative’s subscription.

While those who share their subscriptions with a spouse or other family members under the same roof almost certainly have nothing to fear, blatant offenders — say, college students who give their logins to everyone on their dormitory floor — could get in trouble.

“What becomes not legal is if you send your username and password to all your friends so they can get free subscriptions,” said the bill’s House sponsor, Rep. Gerald McCormick.

Under the measure, download services that believe they are getting ripped off can go to law enforcement authorities and press charges.

The bill expands an existing law used to prosecute people who steal cable television or leave restaurants without paying for their meals. It adds “entertainment subscription service” to the list of services protected by the law.

Tennessee would become the first state to update its theft-of-cable laws for the 21st century and address the new trend toward Internet delivery of entertainment, according to the Recording Industry Association of America.

“I think it’s stupid,” college student Josh Merbitz said of the law. The 20-year-old music education major at Middle Tennessee State University said he watches Netflix movies online using the password of his friend’s father, with the father’s permission.

Stealing $500 or less of entertainment would be a misdemeanor punishable by up to one year in jail and a fine of $2,500. Theft with a higher price tag would be a felony, with heavier penalties.

Haslam backs idea

Haslam said earlier that he wasn’t familiar with the details of the legislation, but given the recording industry presence, he favors “anything we can do to cut back” on music piracy.

“I don’t know enough about that legislation, but if it’s combating that issue, I would be in favor of it,” Haslam said.

The recording industry loses money when users share accounts for music services instead of paying separately.

Mitch Glazier, executive vice president of public policy for the RIAA, said the bill is a necessary protective measure as digital technology evolves. The music industry has seen its domestic revenue plunge by more than half in 10 years, from $15 billion to $7 billion, he said.

Bill Ramsey, a Nashville lawyer who practices 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.

Music industry officials said they usually catch people who steal and resell logins in large quantities because they advertise.

Among the measure’s critics is public defender David Doyle. He said an “entertainment subscription” could be interpreted to mean a magazine subscription or a health club membership.

Kelly Kruger, an aerospace major at MTSU, said she likes to watch Netflix movies online in her dorm by logging in with her mother’s account information. Kruger said she hands out the login information to friends.

Even with a law against it, “I think people will keep doing it, like illegal downloading,” Kruger said.



It never seems to occur to the recording industry that people have gotten tired of paying $20 for albums with maybe one or two good songs and a whole lot of filler material. Hey, RIAA, maybe if, you know, your products weren't so absurdly overpriced and filled with fluff, you wouldn't be losing so much money? Novel concept, eh?

Maybe someday this country will realize it is not the role of the government to protect industry from the market, but the responsibility of industry to adapt to the market.
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Wade
  • Wade
  • Veteran Member
14 years ago

It never seems to occur to the recording industry that people have gotten tired of paying $20 for albums with maybe one or two good songs and a whole lot of filler material. Hey, RIAA, maybe if, you know, your products weren't so absurdly overpriced and filled with fluff, you wouldn't be losing so much money? Novel concept, eh?

Maybe someday this country will realize it is not the role of the government to protect industry from the market, but the responsibility of industry to adapt to the market.

Originally Posted by: Nonstopdrivel 



It's another illustration of the economic principle of unintended consequences. The more we get laws like this, the less of a moral stigma we attach to breaking the law. The more we reduce legislation to a question of who has power and influence, and the less we see it as the result of consensus within those governed, the more we are willing to exert our own power to avoid being told what to do.

Unfortunately, we've too long been a nation of trusting and law-abiding sheep, so it'll have to get a bit worse before it gets better.

And do not be conformed to this world, but be transformed by the renewing of your mind, that you may prove what is that good and acceptable and perfect will of God.
Romans 12:2 (NKJV)
Porforis
14 years ago
Netflix already restricts usage to 2 simultaneous videos/account, if Netflix can't detect and ban people that are sharing their passwords with large amounts of people, that's their own issue.
Wade
  • Wade
  • Veteran Member
14 years ago
I have no problem with Netflix negotiating a contract restricting use of accounts. As long as they are upfront about it (i.e., not hiding it in legal boilerplate/gobbledygook), that's between them and their customers. And if a customer breaks a contractual promise not to use the account in a certain way, I have no problem with a court offering Netflix the traditional remedy (money damages) for breach of contract.

No one has a right to Netflix's services. And if you don't like their rules, don't deal with them.

What I have problem with is making a matter of contract into a problem of criminal law and enforcement by public agencies, "departments of justice," and district attorneys. Or into something that is determined by the relative ability/power to lobby legislators and other political whores for advantageous "property rules".


And do not be conformed to this world, but be transformed by the renewing of your mind, that you may prove what is that good and acceptable and perfect will of God.
Romans 12:2 (NKJV)
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