This judge must be an idiot
"Since the laptop is no longer in their possession, but that of the police, the Byrds can’t be at risk of harm; ergo, no injunction."
Except that the laptop would contain information that COULD be harmful if this information was used. What if there are account numbers and passwords that go in the wrong hands because this software was insecure or was use for reasons that it shouldn't be used for. If there is one thing that we know, human nature will make us curious, and people that have access to use this software will 'peek; from time to time.
"...former employee of the Aaron’s franchise testified that the software routinely had, in the past, captured highly sensitive information such as bank account details (since it can be configured to capture keystrokes as well as webcam pictures), the judge decided that since the evidence was given by someone no longer in Aaron’s employ, what had happened in the past didn’t count as evidence of likely future harm."
And there is it , right there. A former employee had the ability to get bank account details. How can this no be likely future harm!
Perhaps if the rental contract made it clear that this software was on your system and what it could do, and you signed it saying you agree. Otherwise, I cannot see any reason this would be okay.