Privacy Policies for Microsoft-Hosted Services Evolving

Under a new policy, Microsoft will refrain from inspecting customer data stored on its online services for its own benefit, even if it suspects potential theft of its intellectual property. Instead, Microsoft will refer the matter to appropriate law enforcement agencies. The change was announced in Mar. 2014 when charges were filed against a former Microsoft employee and a blogger for the alleged theft of Microsoft trade secrets. The alleged theft and search occurred in 2012. The issue highlights the reality that hosted services technology may be advancing faster than the law regarding such technology.

The New Policy

Brad Smith, general counsel and executive vice president, Legal and Corporate Affairs, stated Microsoft’s new policy: “Effective immediately, if we receive information indicating that someone is using our services to traffic in stolen intellectual or physical property from Microsoft, we will not inspect a customer’s private content ourselves. Instead, we will refer the matter to law enforcement if further action is required.”