Microsoft Plans New Security Technology

Microsoft Corp. is planning a new project to improve security by creating within its Windows software a virtual “vault” where customers would conduct electronic transactions and store sensitive information.

The effort, called Palladium, would require consumers to buy new computers and other devices equipped with ultra-secure computer chips from Intel Corp. and Advanced Micro Devices Inc., which already are involved in the project, or other companies.

The project’s success depends on broad consumer adoption of such devices, since these highly secure computers could safely exchange information only among themselves.

Microsoft said the technology, which stemmed from early work by its engineers to deliver digital movies that couldn’t be pirated, won’t be available for at least 18 months. Company officials have told other executives in private briefings they do not expect to see mainstream products for at least five years.