A Seattle Judge recently ruled in a class action suit against Microsoft that IP Addresses do not constitute Personal Identifiable Information (PII) for purposes of interpreting restrictions in a user agreement.  The ruling, recently reported by Online Media Daily,  runs counter to decisions and interpretations in both the EU and New Jersey. 

To avoid litigation on this front, companies should consider specifically addressing the disclosure of IP addresses in privacy policies and contracts with use restrictions or permissions.  While some judges may be reluctant to expand the definition of PII, the technological reality that a little information goes a long way in tracking a person will continue to be compelling.