TERMS OF SERVICE

Last Updated:   September 2008

THANK YOU FOR CHOOSING ZUNE!

1. What the Contract Covers.

This is a contract between you and Microsoft Corporation, One Microsoft Way, Redmond, Washington, USA. Sometimes Microsoft is referred to as "we," "us" or "our".  This contract applies to any Zune software, sites, or services, including updates, which you use while this contract is in force.  All of the software, sites, or services are referred to in this contract as the "service."

Please note that we do not provide warranties for the service. The contract also limits our liability. These terms are in sections 16 and 17 and we ask you to read them carefully.

As described in Section 10, by accepting the Terms of Service you authorize Microsoft to download and install upgrades, including updates to Windows Media digital rights management technology (WMDRM), to your computer over the Internet.

2. When You May Use the Service.

You may start using the service as soon as you have finished the sign-up process.

3.  How You May Use the Service.

In using the service, you will:

·         obey the law;

·         obey the Zune Code of Conduct and any other codes of conduct or  notices we provide;

·         keep your service account password secret;

·         use software and hardware configuration which meets the minimum system requirements; and

·         promptly notify us if you learn of a security breach related to the service.

4. How You May Not Use the Service.

In using the service, you may not:

·         use the service in a way that violates the law or harms us or our affiliates, content providers, resellers, distributors, and/or vendors (collectively, the "Microsoft parties"), or any customer of a Microsoft party;

·         use any portion of the service or any device compatible with the service to illegally copy or distribute content that you do not have rights to copy or distribute or otherwise use the service in a manner that infringes upon or violates the rights of a third party;

·         use any automated process or service to access and/or use the service (such as a BOT, a spider, periodic caching of information stored by Microsoft, or "meta-searching");

·         use any unauthorized means to modify or reroute, or attempt to modify or reroute, the service;

·         damage, disable, overburden, or impair the service (or the network(s) connected to the service) or interfere with anyone’s use and enjoyment of the service;

·         resell or redistribute the service, or any part of the service;

·         distribute, post, publish, upload, disseminate or discuss any materials that violate the Zune Code of Conduct,  including defamatory, infringing, harassing, threatening, obscene, sexual or other unlawful content or materials;

·         post links to websites or materials that could harm other users' computers or would allow others to inappropriately access software or Web sites or would violate this Terms of Service;

·         post or otherwise transmit any viruses, corrupted data or other harmful, disruptive or destructive files;

·         create a Zune tag or motto that other users may be offended by, including words that sound like, stand for, hint at, abbreviate, or insinuate any of the following: profane words/phrases, sexually explicit language, sexual innuendo, hate speech (including but not limited to racial, ethnic, or religious slurs), illegal drugs/controlled substances, or illegal activities;

·         harvest or otherwise collect information about others, including e-mail addresses, without their consent;

·         post or otherwise distribute any advertising, solicitations or promotions;

·         impersonate any person or entity or otherwise misrepresent your affiliation with a person or entity;

·         publish, distribute or disseminate any topic, name, material, file or information that incites discrimination, hate or violence towards one person or a group because of their race, religion, nationality, transgender status, homosexual status or HIV/AIDS status, or that insults the victims of crimes against humanity by contesting the existence of those crimes; or

·         use the forums for any commercial purpose without the express consent of Microsoft. You may only create an account for yourself as an individual. You may not create an account for your corporation or other business entity.

 5. Microsoft Authentication Network.

We may provide you with credentials on our authentication network to use with the service. You are solely responsible for any dealings with third parties (including advertisers) who use our authentication network, including the delivery of and payment for goods. This contract applies to you whenever you use the credentials you obtained with the service. When you use our authentication network to gain access to any site, the terms and conditions for that site, if different from this contract, may also apply to you in your use of that site. Please refer to the terms of use for each site that you visit. We may cancel or suspend your access to our authentication network for inactivity, which we define as failing to sign in to our authentication network for an extended period, as determined by us. If we cancel your credentials, your right to use our authentication network immediately ceases.

6. You Are Responsible For Your Service Account.

Only you may use your service account. For some parts of the service, we may notify you that you may set up additional member accounts that are dependent on your account (an "associated account"). You are responsible for all activity that takes place with your service account or an associated account. You may not authorize any third party to access and/or use the service on your behalf.

You must be 18 or over to open an account. If you are under 18, your parent or legal guardian must set up an account in your behalf, and by opening an account, you represent and warrant that you are 18 or over. You further represent that you are the parent or legal guardian of each minor that you allow to use your service account or associated account. You acknowledge that you are aware that some features of the service and some content available through the service may contain or expose users to material that is unsuitable for minors, and you agree to supervise usage by minors whom you permit to use the service. Microsoft offers Family Settings in Zune software that allows you to restrict purchases and restrict access to explicit content in the Zune Marketplace. You may view or revise your Family Settings by signing into the service at Zune.net/myaccount. You remain responsible for any material for which an associated account gains or is denied access to as a result of your use, or failure to use, the Family Settings.

7. If You Are an Associated Account User.

If you are the user of an associated account, then the holder of the service account has full control over your associated account. This control includes the right to end the service, close or alter your associated account at any time, and to request and receive usage information related to your associated account. Any data related to your associated account is collected and delivered to the holder of the service account and Microsoft. As an associated account user, this contract applies to you except for the following sections: Section 6 (You Are Responsible for Your Service Account), Section 11 (If You Pay Microsoft); Section 18 (Your Cancellation of Service), and Section 24 (Our Notices to You; Consent Regarding Electronic Information).

8. Your Materials.

You may be able to submit materials for use in connection with the service.  Except for material that we license to you, we do not claim ownership of the materials you post or otherwise provide to us related to the service (called a "submission"). However, by posting or otherwise providing your submission, you are granting to us free permission to:

·         use, copy, distribute, display, perform, publish and modify your submission, each in connection with the service;

·         publish your name in connection with your submission; and

·         grant these permissions to other persons or entities.

We will not pay you for your submission. Although we do not control and have no obligation to screen, edit or monitor any submissions, we may refuse to publish, and may remove your submission from the service at any time without notice.  Please respect copyright.  For every submission you make, you must have all rights necessary for you to grant the permissions in this section. 

We take no responsibility and assume no liability for any submissions posted, stored or uploaded by you or any third party, or for any loss or damage thereto, and you are solely responsible for creating backup copies of and replacing any submissions you post or store on the site at your sole cost and expense.

9. Privacy.

You consent to the collection, use and disclosure of your personal information outlined in this section and in the Zune Privacy Statement.

In order to provide you the service, we may collect certain information about service performance, your service use, and your use of your Zune device and Zune software. We may automatically upload this information from your computer or Zune device. You may read about this information collection in more detail in the Zune Privacy Statement.

We may access or disclose information about you, your account and/or the content of your communications, in order to: (1) comply with the law or legal process served on us; (2) enforce and investigate potential violations of this contract; including use of this service to participate in, or facilitate, activities that violate the law; (3) protect the rights, property, or safety of Microsoft, its employees, its customers or the public; or (4) as otherwise disclosed in our privacy statement.  You consent to the access and disclosures outlined in this section and in the Zune Privacy Statement.

Personal information collected by Microsoft may be stored and processed in the United States or any other country or region in which Microsoft or its affiliates, subsidiaries, or service providers maintain facilities. You consent to any such transfer of information outside of your country or region. Microsoft abides by the safe harbor framework as set forth by the U.S. Department of Commerce regarding the collection, use, and retention of data from the European Union. You may read more about transfers of this data in the Zune Privacy Statement.

We may use technology or other means to protect the service, protect our customers, or stop you from breaching this contract. These means may interfere with your use of the service.  We reserve the right to enforce and/or verify compliance with any part of this contract, including but not limited to Microsoft's right to cooperate with any legal process relating to your use of the service and/or products, and/or a third party claim that your use of the service and/or products is unlawful and/or infringes such third party's rights.

10. Software.

Your use of any software associated with the service will be governed by the terms and conditions of the license agreement accompanying such software.  Additional software, including updates to WMDRM associated with the service or Zune software, may be provided to use the service. If so, we grant you the right to use the software only for the authorized use of the service. We reserve all other rights to the software. We may automatically check your version of the software. We may automatically download upgrades to the software to your computer to update, enhance and further develop the service.  Some software upgrades may be required, and you may not be able to access the service, certain features or the service, or your subscription content, until you upgrade your software.  You may not be notified when software upgrades, including updates to WMDRM associated with the service or Zune software, are downloaded and installed to your computer.

You will not disassemble, decompile, or reverse engineer any software associated with the service, except and only to the extent that the law expressly permits this activity.

The software is subject to United States export laws and regulations. You must comply with all domestic and international export laws and regulations that apply to the software. These laws include restrictions on destinations, end users and end use. For additional information, see www.microsoft.com/exporting.

11. If You Pay Microsoft.

11.1 Charges. This section 11 applies in all situations in which you directly pay us. If you pay a company other than us for the service, then that company is responsible for providing you with the applicable charges and billing term. Even if you do not pay for the service, you may still incur charges incidental to using the service; for example, charges for Internet access.

11.2 Payment. When you create a billing account, you enter your payment method. You must be authorized to use the payment method. You authorize us to charge you for the service using your payment method and for any paid feature of the service for which you choose to sign-up or use while this contract is in force. You will pay service charges in advance. We may charge you a different amount than what you approved. If it is a greater amount, we will tell you the amount and the date of the charge at least 10 days before we make the charge. Also, we may charge you up to the amount you have approved, and notify you in advance of the difference. We may bill you for more than one of your prior billing periods together. If we informed you that the service will be provided indefinitely or automatically renewed, we may automatically renew your service and charge you for any renewal term.

11.3 Updates to Your Billing Account. You must keep all information in your billing account current, including your billing address and the expiration date of your credit card. You can access your billing account at https://billing.microsoft.com, where you can make changes to your billing account. You may change your payment method at any time. If you tell us to stop using your payment method, we may cancel your service.  Your notice to us will not affect charges we submit to your billing account before we reasonably could act on your request.

11.4 Trial Period Offers. You may have received a limited time of free service or some other trial period offer. Unless we notify you otherwise, if you are participating in any trial period offer, you must cancel the service by the end of the trial period to avoid incurring charges. If you do not cancel your service, and we have informed you that the service will automatically be converted into a paid subscription at the end of the trial period, then you authorize us to charge your payment method for the service.

11.5 Prices and Price Increases. The price for the service excludes all taxes and phone charges, unless stated otherwise. You are responsible for any taxes that you are obligated to pay or that we may collect from you. You are responsible for all other charges (for example, phone charges). Currency exchange settlements are based on your agreement with your payment method provider. We may change the price of the service from time to time, but we will tell you before we do.

If there is a specific time length and price for your service offer, then that price will remain in force for that time.  After the offer period ends, your use of the service will be charged at the new price.

If your service is on a periodic basis (for example, monthly), with no specific time length, then we will tell you the date of any price change.  That date will be not less than 30 days after we tell you of the price change.

If you do not agree to these changes, then you must cancel and stop using the service before the changes take place. If you cancel your service, then your service ends at the end of your current service time length or, if we bill your account on a period basis, at the end of the period in which you cancelled.

11.6 Refund Policies. Unless otherwise provided by law, all charges are non-refundable unless stated otherwise and the costs of any returns will be at your expense.

11.7 Online Statement; Errors. We will provide you with an online billing statement. This is the only billing statement that we provide. Go to https://billing.microsoft.com to view, print or request a paper copy of this statement. If you request a paper copy, we may charge you a retrieval fee. We will only provide paper copies for the past 120 days. If we make an error on your bill, we will correct it promptly after you tell us and we investigate the charge. You must tell us within 120 days after an error first appears on your bill.  You release us from all liability and claims of loss resulting from any error that you do not report to us within 120 days after the error first appears on your online statement. If you do not tell us within this time, we will not be required to correct the error.  We can correct billing errors at any time.

11.8 Cancelling the service. You may cancel the service at any time, with or without cause. Go to https://billing.microsoft.com to obtain information on cancelling your service. Certain service offers may require cancellation charges, and you will pay all cancellation charges as specified in the materials describing the offer. Cancellation of the service by you will not alter your obligation to pay all charges made to your billing account.

11.9 Late Payments. Except to the extent prohibited by law, we may assess a late charge if you do not pay on time. You must pay these late charges when we bill you for them. The late charge will be the lesser of 1% of the unpaid amount each month or the maximum rate that is permitted by law. We may use a third party to collect past due amounts. You must pay for all reasonable costs we incur to collect any past due amounts. These costs may include reasonable attorneys' fees and other legal fees and costs. We may suspend or cancel your service if you fail to pay in full on time.

11.10 Payments to You. Your right to any payment due you under a service is conditioned upon you promptly providing us with all information we require to properly make the payment (for example, bank account information for receiving the payment). We will use reasonable efforts to tell you what information we require in advance of your use of the applicable service. Even if we do not tell you in advance, you must provide us the information we request before your right to receive the payment accrues. You are responsible for the accuracy of the information you provide and any taxes you may incur as a result of receiving a payment.  You must also comply with any other conditions we place on your right to any payment. If you receive a payment that was not due to you, we may reverse or seek return of the payment and you agree to cooperate with us in our efforts.

12. Microsoft Points

You can participate in the Microsoft Points service. Microsoft Points is a service under which you can acquire Points and redeem those Points for certain online services and digital products. You can see how many Points you have by checking your Points balance at https://billing.microsoft.com. You can obtain selected services or digital products that we elect to offer in exchange for Points. You can do this by redeeming your Points as indicated in the particular messaging you see for those offers.

You can acquire Points in a variety of ways. For example, you can purchase Points, or certain services may give you Points for using the service or specific features of the service (also known as "promotion Points"). You can earn promotion Points only for actions you actually complete. You are responsible for any tax consequences that may result from your participation in the Points service.

When you obtain Points, you have obtained a limited license to a digital product. Points have no monetary value. You may not obtain any cash or money in exchange for Points, regardless of how you acquired those Points. Points are not your personal property. Your only recourse for using Points is to obtain the specific online services or digital products that we offer for Points redemption. We may further restrict your Points redemption offers based on your country of residence. We encourage you to redeem your Points. The existence of a particular offer available for Points redemption is not a commitment by us to maintain or continue to make the offers in the future. The scope, variety and type of online services and digital products that you may obtain by redeeming Points can change at any time. We have no obligation to continue making offers available for Points redemption.

Promotion Points may expire at any time, as set forth in the messages related to that promotion. We may cancel, suspend or otherwise limit your access to your Points balance if we suspect fraudulent, abusive or unlawful activity on your Points balance. Once we delete Points from a balance, we will not reinstate them, except at our discretion. When we cancel, suspend or otherwise limit access to your Points balance, your right to use your Points balance immediately ceases. We will use reasonable efforts to investigate Points balances that are subject to access limitations and to reach a final decision on the limitations promptly. In addition, we may limit your use of the Points service, including applying limits to: the number of Points you may have credited to your Points balance at one time, the number of Points you may redeem within a given time period (for example, one day), and the number of promotion Points you may obtain in a single event.

If we post Points to your balance for an activity that is subsequently voided, canceled or involves a returned item, then we will remove those Points from your balance. You must ensure that we properly post your Points to your Points balance. If you believe that you have validly acquired Points that we have not posted to your Points balance, we will not consider posting these Points unless you contact us within 12 months after the date you claimed to have acquired those Points. We may require reasonable documentation to support your claim.

13. Zune Sites

13.1 Sign In and Software Required

Zune Marketplace is the online store for Zune. You must install the Zune software to access Zune Marketplace. The most current version of that software is available for download from Zune.net. You can browse Zune Marketplace without signing in, but if you want to purchase or download content, you must sign in using your credentials. You will need to purchase Microsoft Points to purchase any content from Zune Marketplace. Other Zune sites, including the Zune Social and Zune forums, also require you to sign in to your Zune account. 

13.2  Zune Marketplace

You can purchase content from the Zune Marketplace. You can also choose to sign up for a Zune Pass subscription, which allows you to stream or download as many songs as you want on a subscription basis from the Zune Marketplace for a flat monthly fee. You can pay for a Zune Pass using a prepaid subscription card, or your credit card. As long as you continue to pay your subscription fee each month, you will have access to all the content in the Zune Marketplace that is made available on a subscription basis. If you do not pay your subscription fee or your Zune Pass subscription terminates for any other reason, you will no longer have access to any content you downloaded under your subscription.

All purchases from the Zune Marketplace and all use of the Zune Pass are subject to the content usage rules set forth in Section 14 below.

By using the service, you may encounter content that may be deemed offensive, indecent, or objectionable, which content may or may not be identified as having explicit language. You agree to use the service at your own risk and that we are not responsible or liable for content that may be found to be offensive, indecent, or objectionable. Content types (including genres, sub-genres, and podcast categories and the like) and descriptions are provided for convenience, and we do not guarantee their accuracy.

We may change the service or delete, modify or discontinue, temporarily or permanently, functions and features of the service at any time and for any reason. Due to contractual or other limitations, from time to time, some content available in the Zune Marketplace may no longer be available. We may change the content available in the Zune Marketplace at any time.

13.3 Trial Subscriptions

You may be offered a Zune Pass subscription on a trial basis. If you have a trial Zune Pass subscription, you will have access to all the content in the Zune Marketplace that is made available on a subscription basis for the length of the Trial Period, once you activate your subscription. At the end of the Trial Period, you can choose to extend your subscription by providing your payment information when prompted. If you don’t extend your trial subscription to a fully paid Zune Pass, you will not have access to any music downloaded to your computer or synched to your Zune device during the trial period (other than any music you have purchased separately from the Zune Marketplace.)

13.4 Zune Online Community

The Zune Social is an online community.  In the Zune online community, you can discover new music, share music with friends, and make new friends.  When you create a Zune account, a Zune card and Zune user profile page will be created automatically for you.  During account creation, you can choose whether to display your music activity (what you’ve been listening to) on your Zune Card and profile page, in order to find other people in the online community with similar musical tastes.   You can customize your Zune Card by selecting an image and background, or you can upload your own pictures to use as a personal image or background.  All pictures and other content uploaded to your profile page or Zune Card must comply with the Zune Code of Conduct.

You are permitted to use our software to create a Zune Card gadget and to post your Zune Card gadget on other Web sites, provided that you fully comply with all the terms and conditions of this contract.  You acknowledge and agree that the Zune Card and the Zune Card gadget contain the rights and property of Microsoft and its licensors, and that any creation, display, posting or other use of the Zune card or Zune card gadget that is not in accordance with these terms is a violation and infringement of such rights and property.   You may not post your gadget, or any other content or web properties owned by us, on a site that (i) facilitates, enables, encourages or advocates illegal copying or unauthorized distribution of third party copyrighted material or any other illegal activity; (ii) contains explicit or obscene content or (ii) would otherwise violate the Zune Terms of Service or Code of Conduct.  If you choose to post your Zune Card gadget on another Web site, note that any privacy settings that you make with respect to your Zune Card may operate differently on other sites.  Microsoft is not responsible for the privacy practices of any site outside the Microsoft family of Web sites, so you are encouraged to read the privacy statements of any sites that you visit or post content.  

13.5 Zune Forums

Zune Forums is a site where Zune users can get help and support with the Zune device, software, and service, and discuss all things Zune. You can browse the Zune Forums without signing in, but to post a message or reply to one, you must sign into your Zune account.  Zune Forums are designed to enable you to communicate with the public at large or with a group, and you should consider anything that you post to a Zune Forum to be public.  You also have the option of sending a “private” reply to any message, so that only that member can see your reply; note, however, that Zune Forum moderators and Microsoft have access to all messages posted on Zune Forums.  To access any private messages sent to you, you must sign in, and click on the link marked “Private Messages”.  All posts you make to Zune forums must comply with the Zune Code of Conduct, and any post that does not may be removed by the moderator.  You can report abuse or violations of the Code of Conduct in a Zune Forum by clicking on the “report” button and completing the web form.  We are not responsible or liable for any statements, representations or content provided by users in the Zune Forum, and your use of Zune Forums is at your own risk.

14.  Content Usage Rules

All content you purchase or acquire on a subscription basis from the Zune Marketplace is subject to this contract and any other applicable terms and conditions, including limitations imposed by copyright owners and the use of digital rights management (DRM) technology, where used. Content may not be modified or edited without the prior written consent of the copyright owner.

Content may be used for personal, non-commercial use only, and may not be used as a musical “ringer” or ringtone in connection with a mobile phone without the prior written consent of the copyright owner. 

Any redistribution, transmission, sale, broadcast, public performance, rental or lending, adaptation, sub-license or other use of the content provided through the Service, except as otherwise permitted in the Terms of Service or by copyright law, is expressly prohibited without the prior written consent of the copyright owner.

You agree that you will not attempt to, or encourage or assist any other person to, circumvent or modify any software required for use of the Zune Marketplace or any of the Content Usage Rules.

Any burning (if applicable) or exporting capabilities are solely an accommodation to you and do not constitute a grant or waiver (or other limitation or implication) of any rights of the copyright owners of any audio or video content, sound recording, underlying musical composition or artwork embodied in any purchased content.

14.1 Purchased Content Usage Rules

Usage Rules for Sound Recordings

You are authorized to use the content that you purchased from the Zune Marketplace on up to five (5) computers and as many Zune devices as are reasonably necessary for your personal and non-commercial use. 

For DRM-protected sound recordings, you are entitled to burn purchased content, and playlists containing purchased content, to CD solely for personal, non-commercial use.  There is no limit to the number of times you can burn an individual song; however, you may only burn the exact same playlist a maximum of seven (7) times. 

For DRM-free sound recordings, you are authorized to make only such copies as are reasonably necessary for your personal and non-commercial use, and any other copying in excess of that is expressly prohibited and may constitute copyright infringement.  There are no burn limits on DRM-free content, but all copies must be for personal, non-commercial use.  

Usage Rules for Videos

You are authorized to use the content that you purchased from the Zune Marketplace on up to five (5) computers and as many Zune devices as are reasonably necessary for your personal and non-commercial use.

14.2 Zune Pass Subscription Content Usage Rules

With a Zune Pass, you may stream or download content on a subscription basis on up to three (3) computers. You may also synch your library onto up to three (3) Zune devices. However, you must sign into the Zune Marketplace at least once every 30 days to refresh the digital licenses that accompany each download of subscription content. If you have transferred subscription content to your Zune device(s), you will need to connect the Zune device(s) to your computer and log into the Zune Marketplace to refresh your device(s) at least monthly or you may lose your access to such content.

With Zune Pass, you may also subscribe to Channels.  Channels are themed, automatically refreshing song lists.  When you subscribe to a Channel, you can listen it, sync it to your Zune device, and save it as a playlist in your collection as long as you continue to subscribe to Zune Pass.  We may change the list of songs in a Channel at any time, upon which the updated song list will be downloaded to your computer. If you want to preserve songs in your collection before a Channel is automatically updated, you can either save a complete set of songs as a permanent playlist or add individual songs to your collection at any time as long as you continue to subscribe to the Zune Pass service.   If you do not have a subscription to Zune Pass, you will not be able to subscribe to Channels.

Subscription content can be played only as long as you continue to subscribe to Zune Pass. If you choose to end your subscription or it otherwise terminates for any reason, you will not be able to play any Zune Pass subscription content that you have downloaded.

You cannot burn subscription content and/or playlists containing subscription content to CD. However, you can separately purchase content from Zune Marketplace under the terms listed above in Section 14.1. Any purchased content would not expire when your subscription ends.

14.3 Podcasts

You can subscribe to podcasts from the Zune Marketplace.  There is no cost to you to subscribe to free podcasts through Zune Marketplace.  When you subscribe, the most recent episodes will be downloaded to your collection.  You can adjust your podcast settings on the settings menu, including the number of episodes to be downloaded.   If you later decide to unsubscribe to a podcast, this will not remove any downloaded podcasts from your collection; you must manually delete them. 

You can recommend a podcast for inclusion in the Zune Marketplace using the “suggest a podcast” link in the podcast section of Zune Marketplace.  All podcasts you recommend for inclusion in the Zune Marketplace must not infringe the rights of any third party and must otherwise fully comply with this Terms of Service and the Zune Code of Conduct.  The decision whether to include a podcast in the Zune Marketplace shall be made by us in our sole discretion, and we reserve the right to remove any podcast from the Zune Marketplace at any time without notice for any reason or no reason, including any podcast that violates the Terms of Service or Code of Conduct or is incorrectly rated.  We do not review, approve or endorse the content of all podcasts that are available through the Zune Marketplace, and we are not responsible or liable for any such podcasts.  You subscribe to and access such podcasts at your own risk.  If you recommend to us a podcast that you have created, you represent and warrant that the podcast fully complies with the Terms of Service and Code of Conduct and does not infringe upon or violate the rights of any third party.  By submitting a podcast to us, you are granting to us a free permission to reproduce, distribute, perform, display and otherwise use and allow the download of the podcast.

15. How We May Change the Contract.

If we make a material change this contract, then we will tell you at least 30 days before the change takes place by email or online posting. If you do not agree to these changes, then you must cancel and stop using the service before the change takes place. If you do not stop using the service, then your use of the service will continue under the changed contract.

16. WE MAKE NO WARRANTY.

We provide the service including all site content and other materials accessed though the service "as-is," "with all faults" and "as available" without warranties of any kind. We do not guarantee the accuracy or timeliness of information available from the service. The Microsoft parties give no express warranties, guarantees or conditions. You may have additional consumer rights under your local laws that this contract cannot change. We exclude any implied warranties including those of merchantability, fitness for a particular purpose, workmanlike effort and non-infringement.

17.  LIABILITY LIMITATION.

You can recover from the Microsoft parties only direct damages up to an amount equal to your service fee for one month.  You cannot recover any other damages, including consequential, lost profits, special, indirect, incidental or punitive damages.

This limitation applies to any type of claim including anything related to:

·         the service, including all Zune-related software, sites, site content and services,

·         content (including code) on third party Internet sites, third party programs or third party conduct,

·         viruses or other disabling features that affect your access to or use of the service,

·         incompatibility between the service and other services, software and hardware,

·         delays or failures you may have in initiating, conducting or completing any transmissions or transactions in connection with the service in an accurate or timely manner, and

·         claims for breach of contract, breach of warranty, guarantee or condition, strict liability, negligence, or other tort.

It also applies even if:

·         this remedy does not fully compensate you for any losses, or fails of its essential purpose; or

·         Microsoft knew or should have known about the possibility of the damages.

Some states do not allow the exclusion or limitation of incidental or consequential damages, so the above limitations or exclusions may not apply to you.  They also may not apply to you because your province or country may not allow the exclusion or limitation of incidental, consequential or other damages.

18. Changes to the Service; Cancellation of Service.

We may change the service or delete features at any time and for any reason.  We may cancel or suspend your service at any time and for any reason. Our cancellation or suspension may be without cause and/or without notice. Upon service cancellation, your right to use the service stops right away. Once the service is cancelled or suspended, any data or content you have stored on the service may not be retrieved later. Our cancellation of the service will not alter your obligation to pay all charges made to your billing account. If we cancel the service in its entirety without cause, then we will refund to you on a pro-rata basis the amount of payments that you have made corresponding to the portion of your service remaining right before the cancellation.

You may cancel the service at any time, with or without cause, upon notice to us by contacting Zune Customer Service at Zune.net | Contact Support.  If you are participating in any trial period offer, you must cancel the service by the end of the trial period to avoid incurring charges. Certain service offers may require cancellation charges, and you will pay all such cancellation charges as specified in the materials describing such offer. Cancellation of the service by you will not alter your obligation to pay all charges made to your Billing Account.

19. Interpreting the Contract.

All parts of this contract apply to the maximum extent permitted by law. A court may hold that we cannot enforce a part of this contract as written. If this happens, then you and we will replace that part with terms that most closely match the intent of the part that we cannot enforce. The rest of this contract will not change. This is the entire contract between you and us regarding your use of the service. It supersedes any prior contract or statements regarding your use of the service. If you have confidentiality obligations related to the service, those obligations remain in force (for example, you may have been a beta tester). The section titles in the contract do not limit the other terms of this contract.

20. Assignment.

We may assign this contract, in whole or in part, at any time with or without notice to you. You may not assign this contract, or any part of it, to any other person. Any attempt by you to do so is void. You may not transfer to anyone else, either temporarily or permanently, any rights to use the service or any part of the service.

21.  No Third Party Beneficiaries.

This contract is solely for your and our benefit.  It is not for the benefit of any other person, except for permitted successors and assigns under this contract.

22. Claim Must Be Filed Within One Year.

Any claim related to this contract or the service may not be brought unless brought within one year.  The one-year period begins on the date when the claim first could be filed. If it is not filed, then that claim is permanently barred. This applies to you and your successors. It also applies to us and our successors and assigns.

23. Your Notices to Us.

You may notify us as stated in the customer support or "help" area for the service. We do not accept e-mail notices.

24. Notices We Send You; Consent Regarding Electronic Information.

This contract is in electronic form. We have promised to send you certain information in connection with the service and have the right to send you certain additional information. There may be other information regarding the service that the law requires us to send you. We may send you this information in electronic form. You have the right to withdraw this consent, but if you do, we may cancel your service. We may provide required information to you:

·         by e-mail at the e-mail address you specified when you signed up for your service;

·         by access to a Microsoft Web site that will be designated in an e-mail notice sent to you at the time the information is available; or

·         by access to a Microsoft Web site that will be generally designated in advance for this purpose.

Notices provided to you via e-mail will be deemed given and received on the transmission date of the e-mail. As long as you can access and use the service, you have the necessary software and hardware to receive these notices. If you do not consent to receive any notices electronically, you must stop using the service.

25. Contracting Party, Choice of Law and Location for Resolving Disputes.

Washington state law governs the interpretation of this contract and applies to claims for breach of it, regardless of conflict of laws principles. All other claims, including claims regarding consumer protection laws, unfair competition laws, and in tort, will be subject to the laws of your state of residence in the United States. You and we irrevocably consent to the exclusive jurisdiction and venue of the state or federal courts in King County, Washington, USA for all disputes arising out of or relating to this contract.

NOTICES

Respect Copyright

Please respect the rights of artists and creators.  Content such as music, photos and video may be protected by copyright.  People appearing in content may have a right to control use of their image.  You may not share other people’s content unless you own the rights or have permission from the owner.

Repeat Infringer Policy

We have adopted a policy of terminating, in appropriate circumstances and at our sole discretion, account holders who are deemed to be repeat infringers.

Notices and Procedure for Making Claims of Copyright Infringement

Under Title 17, United States Code, Section 512(c)(2), notifications of claimed copyright infringement should be sent to service provider's designated agent. ALL INQUIRIES NOT RELEVANT TO THE FOLLOWING PROCEDURE WILL RECEIVE NO RESPONSE.  See Notice and Procedure for Making Claims of Copyright Infringement at http://www.microsoft.com/info/cpyrtInfrg.htm.

Copyright and Trademark Notices

All contents of the service are Copyright © 2008 Microsoft Corporation and/or its suppliers, One Microsoft Way, Redmond, Washington 98052-6399 U.S.A. All rights reserved. Copyright and other intellectual property laws and treaties protect any software or content provided as part of the service.  We or our suppliers own the title, copyright, and other intellectual property rights in the software or content.  Microsoft, Zune, Xbox 360, Windows Live, and/or other Microsoft products and services referenced herein may also be either trademarks or registered trademarks of Microsoft in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.