Microsoft to Rename SkyDrive in Trademark Deal With BSkyB

Microsoft has agreed to rebrand its SkyDrive cloud service after losing a trademark case against the U.K.'s British Sky Broadcasting Group (BSkyB), but BSkyB has granted Redmond some time to make the transition.

According to the deal, "Microsoft [will] continue using the SkyDrive name for a reasonable period of time to allow for an orderly transition to a new brand." Neither company provided details on how long that period of time will last.

The announcement stems from a June decision by the English High Court, which found Microsoft guilty of infringing on BSkyB's trademark. Redmond initially planned to appeal, but has apparently reconsidered. The deal involves "financial and other terms," but they were not disclosed.

"We are pleased to have reached a settlement after Microsoft agreed not to appeal the trademark infringement judgment in relation to its SkyDrive service," BSkyB said in a 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."

"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," Microsoft said.

The SkyDrive name dates back to 2007, when Microsoft opened a beta test of Windows Live SkyDrive, previously known as Windows Live Folders. SkyDrive emerged from beta in 2008, and increased its free storage limit from 1GB to 5GB. Last year, that increased to 7GB.

Redmond has since introduced SkyDrive apps for Windows and iPhone, and later Android. It got a standalone app for the Xbox 360, and Microsoft has a number of improvements planned for SkyDrive within Windows 8.1.

This is not the first time Microsoft has had to rebrand, meanwhile. Last year, it dropped the "Metro" name within Windows 8 amidst a reported trademark challenge from Germany-based Metro AG. The interface is now simply known as "modern" Windows 8.

For more, see PCMag's full review of SkyDrive and the slideshow above.