Sharing Your Netflix Password Could Land You in Jail

A bill was recently passed in Tennessee making it illegal to share your password for online entertainment subscription services, such as Netflix (NASDAQ: NFLX), Rhapsody or Hulu, on or after July 1.

The bill was pushed by recording industry officials (Tennessee's capital is also the world capital of country music, after all) and signed by Governor Bill Haslam on May 30. It is ostensibly intended to stop hackers from stealing and selling passwords in bulk. However, it could also apply to individuals who share password with friends or family.

Those sharing passwords with a spouse or just under one roof may have little chance of getting caught. But a password that gets passed around the college dorm, for example, could get an account holder in trouble.

The law states that stealing $500 or less of entertainment is a misdemeanor punishable by up to a year in jail and a fine of $2,500.

Tennessee becomes the first state to update its theft-of-cable laws for the 21st century, addressing the trend toward Internet delivery of entertainment. No word yet on whether other states will follow suit.