http://windows.microsoft.com/en-US/windows-live/microsoft-services-agreement
As of October 19th
"TheMicrosoftbranded services require that you sign into yourMicrosoftaccount periodically, at a minimum every 270 days, to keep theMicrosoftbranded services portion of the services active, unless provided otherwise in an offer for a paid portion of the services. If you fail to sign in during this period, we may cancel your access to theMicrosoftbranded services. If theMicrosoftbranded services are canceled due to your failure to sign in, your data may be permanently deleted from our servers."
"4.4. What happens if my services are canceled or terminated? If your services are canceled or terminated (whether by you or us), your right to use the services stops immediately and your license to use our software ends. You must then uninstall the software, or, alternatively, we may disable it. If your services are canceled or terminated, we may permanently delete your content from our servers and we have no obligation to return content to you."
That's a bit messed up, if they can delete access to your games through GFWL or downloads on xbox marketplace.
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