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Originally Posted by Nimdock
I was getting excited up until that point, that's why I don't use google products.  
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The EULA's are way too restrictive, and companies are getting away with putting outrageous statements in them... consumers aren't doing anything about it, so who is going to make them stop? It would have to be a boycott and it's just too hard to inform most people. Until a big suit is made out of one of them, it will go unnoticed.
It's easy enough to find examples where the EULA's are impossible to enforce anyway, like how, before last year at about this time... simply installing a copy of Safari for Windows... on a Windows machine violated the EULA because it stated you were only allowed to install it on a Mac-branded computer. This is a bit off subject though.
My point is you really shouldn't have to worry about it, unless you're abusing the service, or there is compromising information contained within. And if you have information in your text inbox that is that sensitive and poses that big of a security risk, it would have had to be sent or recieved through a text anyway, and the cell carriers DO retain a log of all of them.
I can't find much on the EULA right now, it does provide a link to it when you install the application, but I don't feel like removing it, reinstalling it, and potentially having to make it re-sync everything, uploading those contacts takes forever. From the EULA listed online right now, this is the only "in question" part that is stated, and it's pretty normal.
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10. Privacy.
In order to operate and provide the service, we collect certain information about you. We use and protect that information as described in the http://privacy.microsoft.com. In particular, we may access or disclose information about you, including the content of your communications, in order to: (a) comply with the law or respond to lawful requests or legal process; (b) protect the rights or property of Microsoft or our customers, including the enforcement of our agreements or policies governing your use of the service; or (c) act on a good faith belief that such access or disclosure is necessary to protect the personal safety of Microsoft employees, customers or the public.
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But again, they clearly say what it is potentially used for, and you'll find a statement like that in all sorts of EULA's. Just try MyPhone, you may end up liking it. All of your sync'ed information is available online too, and you can manage and clean up duplicate contacts, calendar entries, texts, etc etc. I like this service so far.