Microsoft Corp. v. United States

829 F.3d 197, 2016 WL 3770056
CourtCourt of Appeals for the Second Circuit
DecidedJuly 14, 2016
DocketDocket 14-2985
StatusPublished
Cited by29 cases

This text of 829 F.3d 197 (Microsoft Corp. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Microsoft Corp. v. United States, 829 F.3d 197, 2016 WL 3770056 (2d Cir. 2016).

Opinions

Judge LYNCH concurs in a separate opinion.

SUSAN L. CARNEY, Circuit Judge:

Microsoft Corporation appeals from orders of the United States District Court for the Southern District of New York denying its motion to quash á warrant (“Warrant”) issued under § 2703 of the Stored Communications Act (“SCA” or the “Act”), 18 U.S.C. §§ 2701 et seq., and holding Microsoft in contempt of court for refusing to execute the Warrant on the government’s behalf. The Warrant directed Microsoft to seize and produce the contents of an e-mail account that it maintains for a customer who uses the company’s electronic communications services. A United States magistrate judge (Francis, M.J.) issued the Warrant on the government’s application, having found probable cause to believe that the account was being used in furtherance of narcotics trafficking. The Warrant was then served on Microsoft at its headquarters in Redmond, Washington.

Microsoft produced its customer’s non-content information to the government, as directed. That data was stored in the United States. But Microsoft ascertained that, to comply fully with the Warrant, it would need to access customer content that it stores and maintains in Ireland and to import that data into the United States for delivery to federal authorities. It declined to do so. Instead, it moved to quash the [201]*201Warrant. The magistrate judge, affirmed by the District Court (Preska, C.J.), denied the motion to quash and, in due course, the District Court held Microsoft in civil contempt for its failure.

Microsoft and the government dispute the nature and reach of the Warrant that the Act authorized and the extent of Microsoft’s obligations under the instrument. For its part, Microsoft emphasizes Congress’s use in the Act of the term “warrant” to identify the authorized instrument. Warrants traditionally carry territorial limitations: United States law enforcement officers may be directed by a court-issued warrant to seize items at locations in the United States and in United States-controlled areas, see Fed. R. Crim. P. 41(b), but their authority generally does not extend further.

The government, on the other hand, characterizes the dispute as merely about “compelled disclosure,” regardless of the label appearing on the instrument. It maintains that “similar to a subpoena, [an SCA warrant] requir[es] the recipient to deliver records, physical objects, and other materials to the government” no matter where those documents are located, so long as they are subject to the recipient’s custody or control. Gov’t Br. at 6. It relies on a collection of court rulings construing properly-served subpoenas as imposing that broad obligation to produce without regard to a document’s location. E.g., Marc Rich & Co., A.G. v. United States, 707 F.2d 663 (2d Cir. 1983).

For the reasons that follow, we think that Microsoft has the better of the argument. When, in 1986, Congress passed the Stored Communications Act as part of the broader Electronic Communications Privacy Act, its aim was to protect user privacy in the context of new technology that required a user’s interaction with a service provider. Neither explicitly nor implicitly does the statute envision the application of its warrant provisions overseas. Three decades ago, international boundaries were not so routinely crossed as they are today, when service providers rely on worldwide networks of hardware to satisfy users’ 21st-century demands for access and speed and their related, evolving expectations of privacy.

Rather, in keeping with the pressing needs of the day, Congress focused on providing basic safeguards for the privacy of domestic users. Accordingly, we think it employed the term “warrant” in the Act to require pre-disclosure scrutiny of the requested search and seizure by a neutral third party, and thereby to afford heightened privacy protection in the United States. It did not abandon the instrument’s territorial limitations and other constitutional requirements. The application of the Act that the government proposes — interpreting “warrant” to require a service provider to retrieve material from beyond the borders of the United States — would require us to disregard the presumption against extraterritoriality that the Supreme Court re-stated and emphasized in Morrison v. National Australia Bank Ltd., 561 U.S. 247, 130 S.Ct. 2869, 177 L.Ed.2d 535 (2010) and, just recently, in RJR Nabisco, Inc. v. European Cmty., 579 U.S. -, -, 136 S.Ct. 2090, 195 L.Ed.2d 476 (2016). We are not at liberty to do so.

We therefore decide that the District Court lacked authority to enforce the Warrant against Microsoft. Because Microsoft has complied with the Warrant’s domestic directives and resisted only its extraterritorial aspects, we REVERSE the District Court’s denial of Microsoft’s motion to quash, VACATE its finding of civil contempt, and REMAND the cause with instructions to the District Court to quash the Warrant insofar as it directs Microsoft [202]*202to collect, import, and produce to the government customer content stored outside the United States.

BACKGROUND

I. Microsoft’s Web-Based E-mail Service

The factual setting in which this dispute arose is largely undisputed and is established primarily by affidavits submitted by or on behalf of the parties.

Microsoft Corporation is a United States business incorporated and headquartered in Washington State. Since 1997, Microsoft has operated a “web-based e-mail” service available for public use without charge. Joint Appendix (“J.A.”) at 35. It calls the most recent iteration of this service Outlook.com.1 The service allows Microsoft customers to send and receive correspondence using e-mail accounts hosted by the company. In a protocol now broadly familiar to the ordinary citizen, a customer uses a computer to navigate to the Outlook.com web address, and there, after logging in with username and password, conducts correspondence electronically.

Microsoft explains that, when it provides customers with web-based access to e-mail accounts, it stores the contents of each user’s e-mails, along with a variety of non-content information related to the account and to the account’s e-mail traffic, on a network of servers.2 The company’s servers are housed in datacenters operated by it and its subsidiaries.3

Microsoft currently makes “enterprise cloud service offerings” available to customers in over 100 countries through Microsoft’s “public cloud.”4 The service offerings are “segmented into regions, and most customer data {e.g. email, calendar entries, and documents) is generally contained entirely within one or more data centers in the region in which the customer is located.” J.A. at 109. Microsoft generally stores a customer’s e-mail information and content at datacenters located near the physical location identified by the user as its own when subscribing to the service. Microsoft does so, it explains, “in part to reduce ‘network latency’ 5

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Meyer v. Mittal
D. Oregon, 2023
Basey v. United States
N.D. California, 2022
Feldman v. Comp Trading LLC
E.D. New York, 2021
Kornotzki v. Jawad
S.D. New York, 2020
United States v. Loera
333 F. Supp. 3d 172 (E.D. New York, 2018)
In re Leopold
327 F. Supp. 3d 1 (D.C. Circuit, 2018)
United States v. Gasperini
894 F.3d 482 (Second Circuit, 2018)
United States v. Microsoft Corp.
584 U.S. 236 (Supreme Court, 2018)
Gonzalez v. Google, Inc.
282 F. Supp. 3d 1150 (N.D. California, 2017)
Ajemian v. Yahoo!, Inc.
Massachusetts Supreme Judicial Court, 2017
In re Search Warrant Issued to Google, Inc.
264 F. Supp. 3d 1268 (N.D. Alabama, 2017)
In re Search Warrant No. 16-960-M-1 to Google
275 F. Supp. 3d 605 (E.D. Pennsylvania, 2017)
Cohen v. Facebook, Inc.
252 F. Supp. 3d 140 (E.D. New York, 2017)
State of Tennessee v. Alexander Johnson and Michael F. Williams
538 S.W.3d 32 (Court of Criminal Appeals of Tennessee, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
829 F.3d 197, 2016 WL 3770056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/microsoft-corp-v-united-states-ca2-2016.