Microsoft has refused to give a US court access to one of its customer's emails, insisting it will appeal the order to do so.
Back in July, Microsoft was asked by a US court to hand over the email data of a customer who was being investigated by the authorities, but it refused to do so, leading to the order's suspension.
Over the weekend, that suspension was lifted, meaning Microsoft was obliged to hand over the data, but again it refused and insisted it would appeal.
Top technology firms have been hit hard since the NSA spying scandal broke last summer, with many non-US customers shying away from using US firms' services for fear of being snooped on.
A report released in the summer said the reputation of cloud firms has suffered hugely since the scandal reared its head, citing Forrester research which claims that it could cost the cloud industry between $22bn (£12.96bn) and $180bn over the next three years.
Microsoft admitted that customers are much more wary of using its services since the NSA revelations and has taken steps to assure them, including allowing some customers the chance to view its datacentre's source code for themselves to prove no government back doors have been built in.
The vendor said it plans to defy the court order.
"Microsoft will not be turning over the email and plans to appeal," it said. "Everyone agrees this case can and will proceed to the appeals court. This is simply about finding the appropriate procedure for that to happen."
Fall in shipments through distribution in first six weeks of Q4 are an indicator that Black Friday could be a damp squib, according to analyst Context
CEO Justin Harling and COO Richard Behan buy out other shareholders
UK chief executive Cindy Rose says the proposed deal is needed to maintain the 'free flow' of data
Contingency plans follow Carillion's demise earlier this year