US court decision on password sharing could have long-reaching consequences
Man was convicted for borrowing the password of an ex-colleague to gain access to former workplace
- One judge said the decision had serious legal implications for password sharing
- Streaming apps like Netflix are frequently shared among family members
Updated : 12:03
An appeal court in the United States has ruled that password sharing is illegal, and could set a precednt for other judicial decisions that have masssive consequences for accessing online accounts.
The trial involved a man who was convicted of using an ex-colleague's password to enter into a work database, in order to gain access to information for a new business he was starting.
David Nosal was charged with hacking in 2008 and convicted in 2013, and his appeal was denied based on the fact that a company must give authorisation for the use of the password, rather than the individual.
However, should this be the case, it could open the door for hundreds or even thousands of cases in the US, and one judge who was against the final decision regarded the activity as "useful and generally harmful."
It could open the door for hundreds or even thousands of cases in the US
Judge Reinhardt, said the case was "about password sharing" rather than hacking and that in his view "the CFAA does not make the millions of people who engage in this ubiquitous, useful, and generally harmless conduct into unwitting federal criminals".
"There simply is no limiting principle in the majority's world of lawful and unlawful password sharing," he added.
A judge who contributed to the triumphant side said that there was "little resemblance" between the case that they deliberated over, and "asking a spouse to log in to an email account to print a boarding pass".
His appeal was denied based on the fact that a company must give authorisation for the use of the password
As a result, any access to a protected computer without password authorisation could lead to a criminal offence, putting thousands in danger.
Many users of media streaming applications such as Netflix share passwords with family members, something prohibited by the company but not strictly enforced.
Chief executive Reed Hastings said that it is more likely that the sharing of passwords is likely to increase their paying membership in the long run.
"As kids move on in their life, they like to have control of their life and as they have an income, we see them separately subscribe," he said. "It really hasn't been a problem."