Microsoft has said it will revise the terms of use for Microsoft
Passport, an authentication service that lets users adopt one
username and password combination for other services, such as
Hotmail, and also lets users create virtual wallets for quick
on-line purchases. Under the present terms, users agree to
Microsoft owning all data they transmit on its system.
According to the present terms of use:
“By posting messages, uploading files,
inputting data, submitting any feedback or suggestions, or engaging
in any other form of communication with or through the Passport Web
Site… you are granting Microsoft and its affiliated companies
permission to use, modify, copy, distribute, transmit, publicly
display, publicly perform, reproduce, publish, sublicense, create
derivative works from, transfer, or sell any such communication…
[including] the right to exploit any proprietary rights in such
communication, including but not limited to rights under copyright,
trademark, service mark or patent laws under any relevant
jurisdiction. No compensation will be paid with respect to
Microsoft's use of the materials contained within such
communication."
A spokesman has said the company will change its terms within
the next few days to reflect its privacy policy with which the
terms conflict. The new terms will say that Microsoft’s right to
use customer communications is only in the case of an exchange with
the company.
Microsoft would probably have struggled to enforce such terms of
use in a UK court if it had attempted to do so because UK law can
exclude terms in a contract that are deemed to be unreasonable,
even if both parties initially agree to the contract. US law does
not offer consumers the same degree of protection.
