Microsoft and the U.S. government reached an agreement that allowed Microsoft to appeal the court’s decision ordering Microsoft to turn over to the government emails stored in Ireland. The deal required Microsoft to be held in contempt of court for failing to comply with a search warrant, so it can then appeal the contempt order. The government agreed not to seek sanctions for contempt, and not to seek actual enforcement of the warrant until the Second Circuit resolves the question whether a U.S. search warrant can be used to get the content of communications held abroad. This week, the court adopted the agreement and held Microsoft in contempt for not complying with the search warrant; Microsoft has already filed a notice of appeal. In the meantime, Microsoft can wear the contempt order as a badge of honor, showing its customers and foreign critics that the company will go to the mat to protect its customers’ privacy.