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Microsoft Licensing FAQs

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Gen AI Contractual Terms

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General


Q: Which agreement governs my use of the following Microsoft GenAI products and services—Microsoft Foundry, Microsoft 365 Copilot and Copilot Chat, GitHub Copilot, Copilot Studio, Copilot for Power BI, Copilot for Sales, Security Copilot, and Dragon Copilot—and which documents should I review to understand my contractual obligations for those products and services only?

Your use of Microsoft Foundry, Microsoft 365 Copilot and Copilot Chat, GitHub Copilot, Copilot Studio, Copilot for Power BI, Copilot for Sales, Security Copilot, and Dragon Copilot is governed by your Microsoft licensing agreement (such as an Enterprise Agreement or Microsoft Customer Agreement) together with any supplemental documentation applicable to those specific offerings, including the Microsoft Product Terms, the Data Protection Addendum (DPA), and any applicable Service Level Agreements (SLAs).

Q: What are the Universal License Terms for Online Services, and what do they include?

The Universal License Terms for Online Services are Microsoft’s general licensing terms for Microsoft online services. They incorporate terms, policies, and codes of conduct that may apply to online services that include generative AI capabilities, such as the Microsoft Generative AI Services Code of Conduct and Responsible Use policies and the Microsoft Enterprise AI Services Code of Conduct.

Q: Which agreement applies to my use of different Microsoft GenAI products and services?

The governing agreement depends on (1) which product you are using and (2) how your organization purchased or enabled it:
  • Most Microsoft GenAI services bought under a Microsoft volume licensing program (for example, Microsoft Foundry, Microsoft 365 Copilot and Copilot Chat, Copilot Studio, Copilot for Power BI, Copilot for Sales, Security Copilot, and Dragon Copilot) are generally governed by your Microsoft licensing agreement (such as the Microsoft Customer Agreement (MCA) or an Enterprise Agreement and Enrollment), together with the applicable Microsoft Product Terms, Data Protection Addendum (DPA), and any applicable Service Level Agreements (SLAs).
  • GitHub Copilot is governed by different terms depending on how you purchase it: if purchased through Microsoft, it is typically addressed under your Microsoft licensing agreement and the applicable GitHub offering terms; if purchased directly from GitHub, it is governed by the GitHub Customer Agreement and GitHub’s product-specific terms.
  • Consumer-style web experiences enabled through Bing (for example, certain web query functionality) may be governed by the Microsoft Services Agreement and the Microsoft Privacy Statement for that web-query component, in addition to any enterprise licensing terms that continue to apply to the core service.

Microsoft Foundry


Q: Which product offerings and legal terms should I review for Microsoft Foundry?

You should review the Product Offerings for Online Services, especially those related to Microsoft Azure. Some models, like Azure OpenAI models, are considered “Azure Direct Models” and have specific terms.

Q: Are there any exceptions or special commitments for data protection and residency?

Yes, there are exceptions to the DPA for Microsoft Foundry and Azure Core Services, including EU Data Boundary commitments for services that enable deployment in a region within the EU Data Boundary.

Q: Where can I find more details about service-specific terms for Microsoft Foundry?

You can find service-specific terms in the Azure section of the Product Terms.

Q: What data residency options do I have for Microsoft Foundry?

You can configure certain Azure services to be deployed within a specific geographic region. For those services, Microsoft stores customer data at rest within the specified region. Some services may not allow configuration outside the US or may store backups elsewhere.

Q: What terms apply to Azure Direct Models and previews?

Azure Direct Models, including Azure OpenAI, are subject to service-specific terms. Preview models have additional terms in the Supplemental Terms for Azure Previews.

Q: Does abuse monitoring apply to Microsoft Foundry?

Your use of Microsoft Foundry is governed by either the Microsoft Customer Agreement (MCA) or the Microsoft Business Services Agreement, Enterprise Agreement and Enrollment, depending on your purchasing method.

Q: Can I choose where my Azure services are deployed?

Yes, you can configure certain Azure services to be deployed within a specific geographic region. If you select a region, Microsoft stores your customer data at rest within that region. Some services may not allow you to choose a region or may store backups in other locations. For more details, visit the Microsoft Trust Center.

Q: Does the model deployment type affect data processing location?

Yes, the model deployment type you select for each model in Microsoft Foundry can affect where your data is processed. You can find more information in the learn article and Azure data residency information.

Q: What are Azure Direct Models, and do they have special terms?

Azure Direct Models include Azure OpenAI models and models from other providers, as listed in the Microsoft Foundry model catalog. Some are designated as ‘Preview’ and have additional terms in the Supplemental Terms for Azure Previews.

Q: Are there abuse monitoring requirements for Azure Direct Models?

Yes, abuse monitoring terms apply to Azure Direct Models in Microsoft Foundry unless you are approved for modified content filters after submitting the registration form.

Q: Where can I find official documentation for Microsoft Foundry?

You can access official documentation for Microsoft Foundry. Documentation may have contractual force.

Q: What agreement governs my use of Grounding with Bing Search in Microsoft Foundry?

The Microsoft License Agreement governs your use of Grounding with Bing Search and Grounding with Bing Custom Search through Microsoft Foundry.

Q: Do data protection terms (DPA) apply when I use Grounding with Bing Search?

No, the Data Protection Addendum (DPA), does not apply to Grounding with Bing Search or Bing Custom Search. Instead, the Microsoft Privacy Statement applies.

Q: What happens to my customer data when I use Grounding with Bing Search or Bing Custom Search?

When you use Grounding with Bing Search or Bing Custom Search, your customer data may flow outside your compliance and geographic boundary.

Q: Where can I find the terms of use for Grounding with Bing Search and Bing Custom Search?

You can find the terms of use for Grounding with Bing Search and Bing Custom Search referenced in your Microsoft licensing agreement and related documentation.

Microsoft 365 Copilot & Copilot Chat


Q: Which product offerings and legal terms should I review for Microsoft Copilot and Microsoft Copilot Chat?

You should review the Product Offerings for Online Services, especially those related to Microsoft 365. Microsoft 365 Copilot and Copilot Chat are part of the “Office 365 Services,” which are considered “Core Online Services.

Q: How is Microsoft 365 Copilot Chat made available to me?

Microsoft 365 Copilot Chat is listed among the products available in the Microsoft 365 Product family. It is also available as an additional benefit included with qualifying Microsoft 365 Enterprise or Microsoft Entra ID licenses.

Q: Do abuse monitoring terms apply to Microsoft 365 Copilot or Copilot Chat?

No, abuse monitoring terms do not apply to Microsoft 365 Copilot or Microsoft 365 Copilot Chat.

Q: Where is my data stored if I use Microsoft 365 Copilot or Copilot Chat in the EU?

Both Microsoft 365 Copilot and Copilot Chat are EU Data Boundary Services, so your data is stored within the EU Data Boundary.

Q: Where can I find documentation for Microsoft 365 Copilot?

Visit Microsoft Learn for documentation for Microsoft 365 Copilot documentation.

Q: What terms apply if my organization enables web query functionality in Microsoft 365 Copilot or Copilot Chat?

If your organization gives you access to web query functionality (such as the “Web content” plugin in the Copilot work tab), your use is governed by the Microsoft Services Agreement (MSA) and the Microsoft Privacy Statement.

Q: When do Microsoft Services Agreement and the Microsoft Privacy Statement terms apply to my use of Copilot or Copilot Chat?

These terms apply only when the “Web content” plugin is activated in Microsoft 365 Copilot or Copilot Chat.

Q: What does the Microsoft Services Agreement (MSA) cover for web queries?

The Microsoft Services Agreement outlines your rights and responsibilities when using web query features in Copilot or Copilot Chat.

Q: How does the Microsoft Privacy Statement affect my data when using web queries?

The Microsoft Privacy Statement explains how your data is handled and protected when you use web query functionality through Bing in Copilot or Copilot Chat.

Q: When can I use web query functionality in Microsoft 365 Copilot or Copilot Chat?

You can use web query functionality when your IT administrator enables the “Web content” plugin or optional Internet-based connected experiences. Administrators can enable or disable web groundings for Microsoft 365 Copilot.

Q: What terms apply when I use the “Web content” plugin?

No, the web query typically uses a short query inferred from your input, not the entire input, to obtain additional web groundings and enrich the output content.

Q: Does the web query use my entire input?

No, the web query typically uses a short query inferred from your input, not the entire input, to obtain additional web groundings and enrich the output content.

Q: Which terms govern Bing search queries made through Copilot or Copilot Chat?

Only the web query towards Bing search services is subject to separate terms, with Microsoft acting as data controller. All other elements of Copilot or Copilot Chat remain subject to the MS License Agreement.

Q: Where can I find more information about data, privacy, and security for web queries?


Q: Are there additional safeguards for web queries after March 2025?

Yes, if you are authenticated with a Microsoft 365 account and use Copilot Chat, Microsoft applies additional restrictions to web queries submitted to Bing search services. For details on these restrictions, refer to the Product Terms for Microsoft 365 and Microsoft 365 Copilot hub on Microsoft Learn.

GitHub Copilot


Q: Where can I find privacy and security terms for GitHub Copilot?


Q: Are there any GitHub-specific documents I should review?


Q: Does GitHub-specific documents apply to all versions of GitHub Copilot?

No, these terms do not apply to GitHub Copilot purchased directly from GitHub, which is subject to GitHub-specific documents.

Q: Do GitHub SLA terms apply to GitHub Copilot?

Yes, GitHub SLA terms do apply, but there is currently no separate SLA for GitHub Copilot.

Q: Do abuse monitoring terms apply to GitHub Copilot?

No, abuse monitoring terms do not apply to GitHub Copilot.

Q: Where is my code stored if I use GitHub Copilot Enterprise with data residency in the EU?

GitHub Enterprise with data residency allows you to store your code in the EU, but there are no new contract terms for this capability.

Q: Where can I find documentation for GitHub Copilot?

Refer to the GitHub Copilot documentation for guidance. This documentation may have contractual force.

Q: What if I purchase GitHub Copilot under a GitHub agreement instead of Microsoft?

If you purchase GitHub Copilot under a GitHub agreement, the GitHub Copilot Product Specific Terms and the GitHub Customer Agreement apply. These terms cover all GitHub Products and Support for customers who purchase directly from GitHub.

Q: What agreement governs my use of GitHub Copilot Business or GitHub Copilot Enterprise when purchased from GitHub, and which documents should I review to understand my contractual obligations?

Your use of GitHub Copilot Business or GitHub Copilot Enterprise when purchased from GitHub is governed by the GitHub Customer Agreement (GCA). To understand your contractual obligations, you should review the GitHub Copilot Product Specific Terms, GitHub General Privacy Statement, GitHub Data Protection Agreement, and GitHub Pre-release License Terms.

Q: Which Microsoft-specific commitments should I review when my organization uses Microsoft services in conjunction with GitHub Copilot?

Yes, you should review the Microsoft Enterprise AI Services Code of Conduct and the Microsoft Customer Copyright Commitment Required Mitigations section if your organization uses Microsoft services in conjunction with GitHub Copilot.

Q: Does this slide cover both GitHub Copilot Business and Enterprise?

Yes, these terms apply to both GitHub Copilot Business and GitHub Copilot Enterprise when purchased from GitHub.

Q: Where is my code stored if I use GitHub Enterprise with data residency in the EU?

GitHub Enterprise with data residency allows you to store your code in the EU, but there are no new contract terms for this capability.

Q: Where can I find official documentation for GitHub Copilot?

You can find official documentation for GitHub Copilot https://docs.github.com/en/copilot. Documentation may have contractual force.

Q: Can I purchase GitHub Copilot under a Microsoft agreement?

Yes, GitHub Copilot can be purchased under a Microsoft agreement instead of a GitHub agreement.

Copilot in Fabric


Q: Where can I find privacy and security terms for Copilot in Fabric?

Privacy and security terms are detailed in the Product Terms and the Customer Copyright Commitment Required Mitigations section.

Q: Which product offerings and legal terms do I need to review when I use Copilot in Fabric?

You should review the Product Offerings for Online Services, especially those related to Microsoft Azure and Microsoft Fabric.

Q: Do abuse monitoring terms apply to Copilot in Fabric?

No, abuse monitoring terms do not apply to Copilot in Fabric. These services do not use the human review abuse monitoring capability.

Q: Where is my data stored if I use Copilot in Fabric in the EU?

There is an EU Data Boundary (EUDB) commitment for Copilot features in Fabric copilots, excluding preview features. Your data is stored within the EU Data Boundary.

Q: Where can I find official documentation for Copilot in Fabric?

You can find official documentation for Copilot in Fabric Overview of Copilot in Fabric - Microsoft Fabric | Microsoft Learn.

Q: What workloads and features are included under Copilot for Fabric?

Microsoft Fabric is an Azure Service. Many Copilot capabilities are generally available across Fabric workloads for Data Factory, Real-time Intelligence, Engineering and Data Science, and Power BI. New features may be added in preview first before becoming generally available. “Copilot for Fabric” encompasses all these features and is a paid-for service, even if certain features are in preview.

Q: Where can I find privacy and security terms for Copilot in Power Apps, Power Automate, and Power Pages?

Privacy and security terms are detailed in the Product Terms and the Customer Copyright Commitment Required Mitigations section.

Q: Are there special terms for preview features in Copilot for Power Apps, Power Automate, and Power Pages?

Yes, the Supplemental Terms of Use for Microsoft Power Platform and Dynamics 365 Preview for Online Services apply to preview features. Previews and online services or service tiers provided free of charge are not eligible for SLA claims or credits.

Copilot in Power Apps, Power Automate, and Power Pages


Q: Are Copilot capabilities generally available in Power Apps, Power Automate, and Power Pages?

Yes, many Copilot capabilities are now generally available in Power Apps, Power Automate, and Power Pages. New features may first be released in preview before becoming generally available.

Q: Do abuse monitoring terms apply to Copilot in Power Apps, Power Automate, or Power Pages?

No, abuse monitoring terms do not apply to Copilot in Power Apps, Power Automate, or Power Pages. These services do not use the human review abuse monitoring capability.

Q: Where is my data stored if I use Copilot in the EU?

There is an EU Data Boundary Commitment for Copilot features in Power Apps, Power Automate, and Power Pages, excluding preview features. Your data is stored within the EU Data Boundary.

Q: Where can I find more information about Copilot in Power Apps, Power Automate, and Power Pages?


Copilot in Dynamics 365


Q: Where can I find privacy and security terms for Copilot in Dynamics 365?

Privacy and security terms are detailed in the Product Terms and the Customer Copyright Commitment Required Mitigations section.

Q: Are there special terms for preview features in Copilot for Dynamics 365?

Yes, the Supplemental Terms of Use for Microsoft Power Platform and Dynamics 365 Preview for Online Services apply to preview features. Previews and online services or service tiers provided free of charge are not eligible for SLA claims or credits.

Q: Do Dynamics 365 services provide EU Data Boundary commitments?

Yes, most Dynamics 365 services are Core Online Services and provide EU Data Boundary commitments for Copilot features, excluding previews.

Q: Are Copilot capabilities generally available in Dynamics 365?

Yes, many Copilot capabilities are now generally available in Dynamics 365. New features may first be released in preview before becoming generally available.

Q: Do abuse monitoring terms apply to Copilot in Dynamics 365?

No, abuse monitoring terms do not apply to Copilot in Dynamics 365. These services do not use the human review abuse monitoring capability.

Q: Where is my data stored if I use Copilot in Dynamics 365 in the EU?

There is an EU Data Boundary Commitment for Copilot features in Dynamics 365, excluding preview features. Your data is stored within the EU Data Boundary.

Q: Where can I find more information about Copilot in Dynamics 365?

You can find more information in the official documentation:

Copilot Studio


Q: Where can I find privacy and security terms for Copilot Studio?

Privacy and security terms are detailed in the Product Terms and the Customer Copyright Commitment Required Mitigations section.

Q: Are there special terms for preview features in Copilot Studio?

Yes, the Supplemental Terms of Use for Microsoft Power Platform and Dynamics 365 Preview for Online Services apply to preview features. Previews and online services or service tiers provided free of charge are not eligible for SLA claims or credits.

Q: Does Copilot Studio provide EU Data Boundary commitments?

Yes, Copilot Studio is a Core Online Service and provides EU Data Boundary commitments for Copilot features, excluding previews.

Q: Are Copilot Studio capabilities generally available?

Yes, many Copilot capabilities in Copilot Studio are now generally available. New features may first be released in preview before becoming generally available.

Q: Do abuse monitoring terms apply to Copilot Studio?

No, abuse monitoring terms do not apply to Copilot Studio. These services do not use the human review abuse monitoring capability.

Q: Where is my data stored if I use Copilot Studio in the EU?

There is an EU Data Boundary Commitment for Copilot Studio features, excluding previews. Your data is stored within the EU Data Boundary.

Q: Where can I find official documentation for Copilot Studio?


Q: When can I use Grounding with Bing Search or Bing Custom Search in Copilot Studio?

You can use these features when they are optionally enabled in Microsoft Copilot Studio.

Q: Which terms apply to the use of Grounding with Bing Search and Bing Custom Search?

The Terms of Use for Grounding with Bing Search and Grounding with Bing Custom Search apply whenever you use these features.

Q: Does the Data Protection Addendum (DPA), apply to Grounding with Bing Search or Bing Custom Search in Copilot Studio?

No, the Data Protection Addendum (DPA)  does not apply to the use of Grounding with Bing Search or Bing Custom Search.

Q: Which privacy policy governs Grounding with Bing Search or Bing Custom Search?

The Microsoft Privacy Statement governs the use of Grounding with Bing Search and Bing Custom Search.

Copilot for Power BI


Q: Where can I find privacy and security terms for Copilot for Power BI?

Privacy and security terms are detailed in the Product Terms and the Customer Copyright Commitment Required Mitigations section.

Q: Are there special terms for preview features in Copilot for Power BI?

Yes, the Supplemental Terms of Use for Microsoft Power Platform and Dynamics 365 Preview for Online Services apply to preview features. Previews and online services or service tiers provided free of charge are not eligible for SLA claims or credits.

Q: Does Copilot for Power BI provide EU Data Boundary commitments?

Yes, Copilot for Power BI is part of the Microsoft Fabric offering, and some Fabric terms may apply. EU Data Boundary commitments apply to Copilot features, excluding previews.

Q: Do abuse monitoring terms apply to Copilot for Power BI?

No, abuse monitoring terms do not apply to Copilot for Power BI. These services do not use the human review abuse monitoring capability.

Q: Where is my data stored if I use Copilot for Power BI in the EU?

There is an EU Data Boundary Commitment for Copilot features in Power BI copilots, excluding previews. Your data is stored within the EU Data Boundary.

Q: Do Data Processing Addendum (DPA) terms apply to previews?

No, certain terms in the DPA do not apply to previews unless otherwise specified.

Q: How is Copilot for Power BI enabled in my organization?

Copilot for Power BI is a Microsoft Power Platform Core Service that is enabled along with Microsoft Fabric, a Microsoft Azure Core Service. Admins must enable Fabric for Copilot for Power BI to be available. Once Fabric is enabled, all Copilots in Power BI and other Fabric workloads are managed under the same IT admin controls.

Q: Are Copilot capabilities generally available in Power BI?

Yes, many Copilot capabilities are now generally available across Power BI, but new features may first be released in preview before becoming generally available.

Q: Where can I find official documentation for Copilot for Power BI?


Copilot for Sales


Q: Where can I find privacy and security terms for Copilot for Sales?

Privacy and security terms are detailed in the Product Terms and the Customer Copyright Commitment Required Mitigations section.

Q: Which product offerings and legal terms do I need to review when I use Microsoft 365 Copilot for Sales?

You should review the Product Offerings for Online Services, specifically the Microsoft 365 Copilot for Sales entry.

Q: Does Copilot for Sales provide EU Data Boundary commitments?

Yes, Microsoft 365 Copilot for Sales is a Core Online Service and provides EU Data Boundary commitments.

Q: Do abuse monitoring terms apply to Microsoft 365 Copilot for Sales?

No, abuse monitoring terms do not apply to Microsoft 365 Copilot for Sales.

Q: Where is my data stored if I use Microsoft 365 Copilot for Sales in the EU?

Microsoft 365 Copilot for Sales is an EU Data Boundary Service, which means your data is stored within the EU Data Boundary, excluding previews.

Q: Where can I find official documentation for Microsoft 365 Copilot for Sales?

You can find more information in the official documentation:

Security Copilot


Q: Are there any product-specific terms for Security Copilot?

No, there are no product-specific terms unique to Security Copilot.

Q: Where can I find privacy and security terms for Security Copilot?

Privacy and security terms are detailed in the Product Terms and the Customer Copyright Commitment Required Mitigations section.

Q: Which product offerings and legal terms should I review for Security Copilot?

You should review the Product Offerings for Online Services, especially those related to Microsoft Azure.

Q: Do abuse monitoring terms apply to Security Copilot?

No, abuse monitoring terms do not apply to Security Copilot.

Q: Where is my data stored if I use Security Copilot in the EU?

Customer data is stored at rest in the home “Geo” of your tenant if you haven’t opted into data sharing. For example, if your tenant’s home is in Germany, your data will be stored in “Europe” as the designated Geo for Germany. Pseudonymized personal data may be stored outside the EU.

Q: Where can I find official documentation for Security Copilot?

You can find more information in the official documentation:

Dragon Copilot


Q: Where can I find privacy and security terms for Microsoft Dragon Copilot?

Privacy and security terms are detailed in the Product Terms and the Customer Copyright Commitment Required Mitigations section.

Q: Which product offerings and legal terms should I review for Dragon Copilot?

You should review the Product Offerings for Online Services, specifically the Microsoft Dragon Copilot entry.

Q: Does Microsoft Dragon Copilot provide EU Data Boundary commitments?

Yes, Microsoft Dragon Copilot is a Core Online Service and provides EU Data Boundary commitments.

Q: What are the main provisions in the Dragon Copilot Product Offering Terms?

You must use Dragon Copilot only for healthcare intended uses. You cannot use Dragon Copilot to create, train, or improve a competing product or service.

Q: Do the “Exploitation and abuse” or “Violent content and conduct” provisions apply to Dragon Copilot?

No, these provisions do not apply to content provided as input to Dragon Copilot or generated as output in accordance with healthcare intended uses.

Q: How does Dragon Copilot use customer data?

Customer data is identified and used to improve Dragon Copilot and its underlying AI models. It is never used to train other AI models such as LLMs or speech recognition models without customer consent. Data processed by Dragon Copilot may be subject to human review by Microsoft employees and sub-processors.

Q: Where is my data stored if I use Dragon Copilot in the EU?

The EU Data Boundary is configured automatically for customers with a Microsoft 365/Azure Entra tenant located in the EU or EFTA. Pseudonymized data may be stored outside the EU.

Q: Where can I find official documentation for Dragon Copilot?

You can find more information in the official documentation:

Other Copilots


Q: What other Copilots are generally available for organizations and personal use?

Microsoft offers several Copilots that may be subject to different terms:

Q: Are there Copilots for specialized workloads?


Q: Do preview Copilots have different contractual terms?

Yes, preview Copilots are governed by supplemental terms and may not include SLA coverage or EU Data Boundary commitments.

This content is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, ON THIS PAGE. This information is provided to help guide your authorized use of products you license; it is not your agreement. Your use of products licensed under your volume license agreement is governed by the terms and conditions of that agreement. In the case of any conflict between this information and your agreement, the terms and conditions of your agreement control.
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