Microsoft to rename SkyDrive after losing trademark suit to BSkyB

After a recent UK court ruling that went in British Sky Broadcasting Group’s favour (BSkyB) Microsoft has agreed to change the name of SkyDrive worldwide. BSkyB has noted in a statement that Microsoft will not appeal the ruling and will be changing the name of the brand.

BSkyB has said that it will be allowing Microsoft to retain the name SkyDrive “for a reasonable period of time to allow for an orderly transition to a new brand.” As part of the deal, both Microsoft and BSkyB have agreed not disclose the term, since the agreement is confidential.

The ruling against Microsoft came in June when High Court Judge, Mrs. Justice Asplin ruled that Microsoft’s use of SkyDrive was an infringement on the company’s rights in the “Sky” mark. At the time, Microsoft had said that it would appeal the decision.

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Change in name coming up

A little over a month later, both parties seem to have reached an agreement that Microsoft will not appeal the ruling and will rebrand its service. “We are pleased to have reached a settlement after Microsoft agreed not to appeal the trade mark infringement judgment in relation to its SkyDrive service,” said Sky in the statement. “We will remain vigilant in protecting the Sky brand and will continue to take appropriate action against those companies who seek to use our trade mark without consent.”

Microsoft, on the other hand, tried to assure users that only the name of the service would change. “We’re glad to have resolution of this naming dispute, and will continue to deliver the great service our hundreds of millions of customers expect, providing the best way to always have your files with you,” the software maker said.

This setback will see Microsoft aiming to find a new name for its cloud storage service and rebrand it the world over within a stipulated time frame. BSkyB has not revealed the time limit for Microsoft. It will require quite an effort by Microsoft to rebrand since it will need to rename every single service associated with SkyDrive from the ground up.

Microsoft had been in a similar situation last year where it had to let go of the name “Metro” for its UI redesign after a dispute with its European partner Metro Group.