According to the present terms of use:
“By posting messages, uploading files, inputting data, submitting any feedback or suggestions, or engaging in any other form of communication with or through the Passport Web Site… you are granting Microsoft and its affiliated companies permission to use, modify, copy, distribute, transmit, publicly display, publicly perform, reproduce, publish, sublicense, create derivative works from, transfer, or sell any such communication… [including] the right to exploit any proprietary rights in such communication, including but not limited to rights under copyright, trademark, service mark or patent laws under any relevant jurisdiction. No compensation will be paid with respect to Microsoft's use of the materials contained within such communication."
A spokesman has said the company will change its terms within the next few days to reflect its privacy policy with which the terms conflict. The new terms will say that Microsoft’s right to use customer communications is only in the case of an exchange with the company.
Microsoft would probably have struggled to enforce such terms of use in a UK court if it had attempted to do so because UK law can exclude terms in a contract that are deemed to be unreasonable, even if both parties initially agree to the contract. US law does not offer consumers the same degree of protection.