On July 31, the U.S. District Court for the Southern District of New York affirmed the order of a magistrate requiring Microsoft to turn over to the U.S. government emails that are stored in Ireland.  The court reasoned that subscribers’ emails are no different from a company’s own business records, and therefore a company can be required to bring them back to the United States for disclosure to the government.  Microsoft has announced that it will appeal the ruling to the Second Circuit.  In the course of oral argument, Microsoft revealed that the Chinese government has demanded that Microsoft turn over passwords to allow the Chinese government to seek email information stored in the United States, underscoring the international chaos that the district court’s order is bound to produce, with governments demanding access to emails and customer information stored in the cloud, regardless of their location.