A joint press release by Microsoft and British Sky Broadcasting (BSkyB) explained the decision. From that release:
"According to the settlement, Microsoft will not pursue its planned appeal of this decision and Sky will allow Microsoft to continue using the SkyDrive name for a reasonable period of time to allow for an orderly transition to a new brand. The agreement also contains financial and other terms, the details of which are confidential."
Microsoft officials are not saying when they plan to rebrand SkyDrive or what the new name for the service will be.
Update: I guess this means SkyDrive Pro also will be getting a new name, too.
BSkyB is one of the largest providers of paid television subscriptions in the U.K. and Europe. Sky has begun providing mobile applications and online streaming services to try and expand its large customer base and remain competitive in consideration of what the average consumer now expects. These new services also happen to use cloud-based technology. In addition, the company used to offer its own cloud-based storage service, Sky Store & Share, before closing in December 2011.
This isn't the first time Microsoft is being required to change one of its brands because of a naming dispute.
In 2012, Microsoft dropped the "Metro" name which it had been using to refer to its new design language and user interface for Windows and Windows Phone. Company officials said Metro was just a codename, even though it was widely used in marketing and other materials. Microsoft officials never said that the reason for discontinuing Metro was due to a trademark dispute, but many company watchers believe a dispute with retailer Metro AG led to Microsoft's decision to steer clear of Metro.
Microsoft never made it clear what the replacement for "Metro" was. Different divisions at the company use different terms, including "Modern" and "Windows Store" as synonyms for Metro/Metro-Style.
If you were to rebrand SkyDrive, what would you go with? How about Azure Drive? Other thoughts?