This policy setting controls whether users can open protected content created with a Windows Live ID (formerly Microsoft ...

This policy setting controls whether users can open protected content created with a Windows Live ID (formerly Microsoft .NET Passport) authenticated account. 

If you enable this policy setting, users cannot open protected content created with a Windows Live ID account. 

If you disable or do not configure this policy setting, when a user opens a rights-managed file created with a Windows Live ID, the application connects to a licensing server to verify the user's credentials and to download a license that defines the level of access the user has to the file. If your organization has policies that govern access to external services such as Windows Live ID, this capability could allow users to violate those policies.