Microsoft case judge: Is it time for better data laws?

US lawmakers may have to step in and decide whether local warrants can apply to digital content held overseas.

That's according to the judge in Microsoft's case against the American government, over warrants demanding access to an email account stored on servers in Ireland.

However, he's not holding his breath such changes will happen anytime soon.

Microsoft argues the warrant shouldn't apply, as the data is held overseas, while the government says the company has control of the data from the US.

The latest appeal is rumbling through courts in the US, with the final result expected to cause repercussions throughout the tech industry.

It could also pressure US lawmakers to finally take legislative action.

"I do think the one thing that probably everyone agrees on is that, as so often, it would be helpful if Congress would engage in that kind of nuanced regulation, and we'll all be holding our breaths for when they do," US appellate Judge Gerard Lynch said this week during closing arguments, according to a report on The Hill.

Earlier that day, the report noted, a Microsoft lawyer predicted there's a "100 per cent chance" that Congress would soon take action - but Judge Lynch suggested it was unlikely they'd act quickly, pointing out Congress has not touched the law since "the archaic 1980s pre-internet".

While politicians have brought forward legislation on the issue - Microsoft backs the Law Enforcement Access to Data Stored Abroad Act, which protects data stored abroad and "establishes a balanced process for the government can obtain data while honouring the liberties of other countries", Microsoft has said.

But with only a few more days left in Congressional session, Judge Lynch may well be right not to expect legal changes soon.

In the meantime, Microsoft's lawyer Josh Rosenkranz said the ruling could well sit as an "interim" decision until legislators do finally update the laws.

Lynch is one of three judges hearing the Microsoft case, alongside Victor Bolden and Susan Carney. A ruling on this appeal is expected anytime between October and February.