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** Microsoft Passport Can't Get Through Maryland Customs 

For almost two years, Microsoft has been trying to sign up users 
for Passport, its secure online-wallet service. But it seems to 
have hit an unusual hurdle: legal technicalities in Microsoft's 
licensing agreement could restrict residents of the state of 
Maryland from using the service.

The problem comes from a clause in Passport's terms-of-use 
agreement, which states that if users want to sue Microsoft, they 
must consent to do so in King County, Wash., Microsoft's home 
turf. But Maryland's version of the Uniform Computer Information 
Transactions Act (UCITA) assigns jurisdiction for those cases to 
its state courts. The situation then gets muddied further by 
Microsoft's terms of use, which go on to state that use of the 
Passport service is unauthorized in any jurisdiction that doesn't 
agree to all provisions of the terms. In other words, Microsoft's 
terms of use apparently prohibit Maryland residents from using 
Passport. And since the UCITA requires all Maryland residents to 
honor software agreements they've signed, they may be breaking 
the law if they do use Passport.

But before any resident chokes on crab cakes, take note that 
Kumar Barve, a member of the Maryland House of delegates and a 
co-sponsor of the UCITA, says that lawsuits over this conflict 
are a "ridiculous possibility." He says he can't see Microsoft 
actually prohibiting residents of Maryland from using Passport. 
If a Maryland resident sued Microsoft because of a 
Passport-related issue, Barve says the resident would have to go 
before a Maryland judge to decide where the case would be tried. 
"State consumer-protection laws have always trumped licensing 
agreements," he says.

Making this situation even stranger is the fact that Microsoft 
was represented in the drafting of the UCITA and even lobbied for 
its passage. "Microsoft strongly supported the bill," says Barve. 
Representatives of the company did not return calls for comment. 
- David M. Ewalt


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