Latest Microsoft licensing update October 2023

7. Product Terms updates

Generative AI Services

Azure OpenAI terms renamed as Microsoft Generative AI Services. On top of this, the clause was updated with the following terms:

• Reverse Engineering: You may not use any Generative AI service to reproduce any components of the models, algorithms and systems.
• Extracting data: You may not use web scraping, web harvesting or extraction methods to extract data from a Microsoft Generative AI service
• Limit on Customer Use of Output Content: You may not use the Generative AI services to create a competing product
• Data use and access: Microsoft does not use input or output content to train their own services or any OpenAI Service, unless explicitly stated otherwise. Microsoft does monitor this for abusive or harmful uses or outputs
• Data Flows: By using these Generative AI services, you accept that the data may be stored and processed outside of the tenant’s geographic region, unless the service states otherwise. This might be a red flag for many EU companies.
• Intellectual property rights: Microsoft states to not own any output content.
• Bing Search: For any component that uses or is integrated with Bing, Microsoft states that these are covered under the Microsoft Services Agreement and the Microsoft Privacy Statement.
• Copilot Copyright Infringement: Microsoft will assist and defend customers in third-party intellectual property infringement claims, if the following conditions are met:
  • You must not have disabled, evaded, disrupted, or interfered with the content filters, restrictions in Metaprompts (=instructions coded into a Microsoft Generative AI Service that provide directions to the service for generating Output Content), or other safety systems that are part of the product
  • You do not modify, use, or distribute the Output Content in a manner that it knows, or should know, is likely to infringe or misappropriate any proprietary right of a third party.
  • You are allowed to use the data that you use as Input
  • The Output Content does not violate a third party’s trademark or related rights

Azure Active Directory

Microsoft changed any reference to Azure Active Directory to the new name: Microsoft Entra ID, this is visible across the entire Product Terms.

Windows Desktop OS

Microsoft added Universal Print per User to the product list

Microsoft 365

Many new product additions or renames to the Microsoft 365 product list:

• Forensic Evidence for Insider Risk Management was renamed to Insider Risk Management Forensic Evidence Add-on
• Microsoft 365 E3 and E5 suites have added their EEA counterparts. This is around the removal of the Microsoft Teams app from the license, which we talked about last month (link). As an example, if you want to find the M365 E3 product for this, this is now called Microsoft 365 E3 EEA (No Teams). A single entry is available for Microsoft Teams EEA. These same updates were made to the Office 365 page for any suites with Microsoft Teams.
• Microsoft Viva Workplace Analytics and Employee Feedback (User SL), Microsoft Viva Employee Communications and Communities (User SL), Microsoft Defender for IoT – EIoT Device License – add-on were added to the list
• Microsoft Syntex and Scheduler were removed
• An additional clarification was added for Teams EEA: Customers in European Economic Area (EEA) countries and Switzerland may acquire and use Microsoft 365 EEA (no Teams) and Microsoft Teams EEA Licenses. Licensing terms for equivalent suites that include Microsoft Teams are applicable to EEA suites.
• An additional clarification was added for Defender for IoT – Enterprise IoT: Microsoft 365 E5 or Microsoft 365 E5 Security customer is entitled to cover up to five concurrent IoT Devices in the context of business operations (EIoT) for each Microsoft 365 E5 or Microsoft 365 E5 Security License. For any additional EIoT device coverage, the customer must purchase one Microsoft Defender for IoT – EIoT Device License – add-on license per additional EIoT device.

Microsoft glossary

Microsoft updated its glossary with all the new definitions around Generative AI Services:

• Copilot means a Microsoft Generative AI Service that is identified as a ‘Copilot.’ Copilot receives its own definition, which is interesting as Microsoft is branding it as such.
• Covered Product means any Microsoft Copilot or Bing Chat Enterprise Product that is available for a fee through Microsoft volume licensing.
• Customize when used in connection with large language or multi-modal models, means to expose a model to Customer Data and instruct the model to use that Customer Data so that the model produces tailored Output Content that is more relevant to a specific customer. When used in connection with Copilots, this is sometimes called “grounding” and the Customer Data used to Customize a model may include information referred to as “grounding data.”
• Input means all Customer Data that Customer provides, designates, selects, or inputs for use by a generative artificial intelligence technology to Customize a model or generate output.
• Metaprompts means instructions coded into a Microsoft Generative AI Service that provide directions to the service for generating Output Content.
• Microsoft Generative AI Service means an Online Service or feature thereof that provides Output Content using generative artificial intelligence technologies.
• Output Content means any data, text, sound, video, image, code, or other content generated by a model in response to Input.