Microsoft is changing the name of Skydrive, its cloud storage service, after a legal challenge by BSkyB.
It follows a High Court ruling in June that the name infringed the broadcaster's trademark. The judge had said there was evidence Skydrive's name had caused confusion among the public.
Microsoft had originally said it would appeal but now, the tech company said it has now agreed to change the name worldwide after a "transition period".
Although BSkyB ended its Store & Share cloud storage service at the end of 2011, it had 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 her ruling, the judge noted that customers having problems with Microsoft's product had ended up calling the broadcaster's helpline in the mistaken belief it was responsible for the service.
At the end of last year Livescribe - the US maker of products that record a digital version of their owner's handwriting - pulled its Sky pen from UK stores after receiving a legal challenge from the broadcaster.It marks the second time in recent months that BSkyB has successfully defended its trademark against a tech company.
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