Microsoft Will Rename SkyDrive to Avoid Trademark Dispute

Microsoft confirmed on Wednesday that it will not fight a July ruling by the England and Wales High Court in which it was found to have infringed on British Sky Broadcasting (BSkyB) trademarks for the term “Sky.” As a result, Microsoft has agreed to rebrand its SkyDrive cloud storage service with a new, as yet-unknown name.

“According to the settlement, Microsoft will not pursue its planned appeal of this decision and Sky will allow Microsoft to continue using the SkyDrive name for a reasonable period of time to allow for an orderly transition to a new brand,” a joint statement from BSkyB and Microsoft notes. “The agreement also contains financial and other terms, the details of which are confidential.”

BSkyB is a UK-based satellite broadcaster, Internet provider and telephone services firm. It does not make or sell any cloud-based storage services, nor is it clear how the firm could have obtained multiple trademarks for a term as general as “sky.” Its legal victory over Microsoft in early July was unexpected, and at the time Microsoft said it would appeal the decision. It’s unclear what changed.