Microsoft has settled with BSkyB in SkyDrive trademark infringement lawsuit rather than appealing the decision of English High Court following which it will have to do away with the SkyDrive name and rebrand its cloud storage service.

Judge Mrs Justice Asplin of English High Court ruled in June that Microsoft is in violation of the ‘Sky’ mark. Redmond had said at the time that it will appeal the decision but, Microsoft has dropped the idea of carrying on with the lawsuit and adopted for a settlement in exchange for temporary usage of the name SkyDrive. However, none of the companies have provided any inputs on how long does ‘temporary’ mean?

Sky is pleased with the settlement and Microsoft’s decision of not appealing against High Court’s decision. Sky said, “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 said that it was glad to have resolved the trademark dispute and that it will continue to deliver great service as its customers expect. We do not believe that a name change would affect Microsoft to a great extent but, going through rebranding of an already successful service may prove to be an unwanted hassle.