Federal appeals court set to hear Microsoft 'cloud' case

NEW YORK (AP) — Microsoft Corp. gets a second chance to prove it's entitled to keep data stored overseas out of the hands of U.S. investigators when its lawyers appear before a federal appeals court Wednesday, but the computer software giant is already hedging its bets, calling on Congress to clarify the law.

The 2nd U.S. Circuit Court of Appeals will hear Microsoft's challenge to a July 2014 lower court ruling concluding that a court or law enforcement agency in the United States is empowered to order a person or entity to produce materials, even if the information is housed outside the country.

The Redmond, Washington-based company hopes the appeals court will overturn the decision upholding the U.S.