Microsoft maintains that content stored in servers overseas should not be searched by the U.S. government but a federal judge rejects its claim, saying Internet service providers should turn over all digital content requested by search warrants regardless if the data is stored abroad or not.

The U.S. government issued a search warrant for emails stored in Dublin, which Microsoft challenged, asking to rescind the request and citing a law that says search warrants cannot be extended abroad. On April 25, Microsoft received a decision that upheld status quo but still believes that it is simply a necessary step in the company's effort in making sure that the government follows the law when private data are sought for in the future.

Microsoft believes that "physical world" search warrants have the power to obtain materials within the United States territory but these cannot search a house in another country just like a warrant from another country cannot search a house in the U.S. It further states that the U.S. entered into a lot of bilateral agreements precisely for the purpose of establishing specific and clear procedures for obtaining data from another country. Microsoft thinks the said law should be applied in the online world.

The magistrate judge in New York agreed to Microsoft's argument but explained that the law only applied to "traditional" warrants and not those that seek digital content which are governed by the federal law, Stored Communications Act. The ruling highlights the technology and privacy debate due to the disclosures of former National Security Agency contractor Edward Snowden about the government's secret efforts to obtain too much consumer data worldwide.

"If U.S. agencies were required to coordinate efforts with foreign governments to secure such information," Judge James Francis said, "the burden on the government would be substantial, and law enforcement efforts would be seriously impeded." Judge Francis who disagreed with Microsoft's view and rejected the company's challenge was also the one who issued the search warrant.

"Bringing these types of jurisdictional challenges is one of the data privacy commitments we made in December, and we'll continue to pursue this issue because we believe we're right on the law and because our customers have told us they value our privacy commitments," Microsoft's Corporate Vice President and Deputy General Counsel David Howard said.

Countries can use the Mutual Legal Assistance Treaty to request information from each other so Microsoft may win its case but there is actually a system that allows for such access.

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