Microsoft has decided not to fight a judge's ruling last month that its SkyDrive service infringes on trademarks held by BSkyB, forcing the software giant to come up with a new name for the cloud storage service.
In a joint statement issued by BSkyB and Microsoft on the matter, the pair agreed that the latter can continue to use the SkyDrive name "for a reasonable period of time to allow for an orderly transition to a new brand".
The settlement also included some financial arrangements between the two companies which were not disclosed.
High Court judge Justice Asplin ruled last month in favour of BSkyB, saying the SkyDrive moniker infringed on trademarks across the entire European Union and continued use of the product name would cause confusion in the market over which company was offering the cloud service. Microsoft initially said it planned to appeal the judge's decision.
"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," a statement from Microsoft read.
BSkyB appeared magnanimous in victory, issuing a statement that said the broadcaster was "pleased to have reached a settlement after Microsoft agreed not to appeal the trademark infringement judgment in relation to its SkyDrive service".
"We will remain vigilant in protecting the Sky brand and will continue to take appropriate action against those companies who seek to use our trademark without consent," Sky officials added.
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