Skydrive to be renamed following customer confusion.
Microsoft has confirmed it is changing the name of its cloud storage device, Skydrive, following a legal challenge by BSkyB.
The name infringed on the broadcaster’s trademark, a High Court ruled in June. The judge had said that the name had been causing confusion amongst the public.
Microsoft originally planned to appeal, but had now conceded and said that it has now agreed to change the name after a "transition period."
In a joint statement, Microsoft and BSkyB said: "The settlement of this case reflects the desire of both companies to focus on joint projects to benefit their customers."
BSkyB ended its Store & Share cloud storage service at the end of 2011, but argued that Microsoft’s use of the word "sky" in its brand posed a problem since it still ran other digital services including its Sky Broadband and Sky Go video streaming products.
In the ruling, the judge stated that customers having problems with Microsoft’s product had ended up calling the broadcaster’s helpline under the impression it was responsible for the service.