It seems pretty goofy to solve this through a law. If a streaming service needs to limit this sort of thing, just limit how many concurrent streams a user can have.
Rdio has done it this way. My wife and I share an account. If I am listening to something and she starts listening, after the song I am currently listening too ends, it stops. If I then play another song, hers stops.
> State lawmakers in country music's capital have passed a groundbreaking measure that would make it a crime to use a friend's login... The legislation was aimed at hackers and thieves who sell passwords in bulk
Haven't read the bill, but this makes it sound like they're punishing the people buying the passwords, not the ones selling the passwords.