Microsoft wants data center legal protection

Actually, not a bad idea.

From the link:

Microsoft Corp.’s (MSFT) top legal official yesterday called on Congress to create new laws that would give data stored in the cloud the same protections as data stored on a PC. He also called for tougher penalties for hackers who access data centers, citing significant damage that’s often done in such attacks.

Brad Smith, senior vice president and general counsel at Microsoft, told an audience at a Brookings Institution forum here today that laws now protecting electronic data were written in the early days of PCs. “We need Congress to modernize the laws and adapt them to the cloud,” he said.

While many consumers have adopted cloud computing by subscribing to e-mail services like Google (GOOG) Gmail, to social networks like Facebook and to Microsoft’s increasing online services offerings, enterprises have been somewhat cautious about moving corporate data to hosted systems due to legal and security concerns both here and abroad. Those fears have been causing problem for IT vendors, forcing some to provide significant protections to large users.