Microsoft has agreed to change the name of its cloud storage service SkyDrive after a UK court ruled that it infringed on a trademark owned by BSkyB.

The British Sky Broadcasting Group won its battle with the software giant after claiming that the SkyDrive product could cause confusion with its own Sky broadband services. A UK judge agreed. The ruling also stands for the entire European Union and has lead Microsoft to consider its branding.

After deciding not to appeal the decision, Microsoft has agreed to change the name, although it is yet to reveal what to. BSkyB will allow the firm to continue to use the brand "for a reasonable period of time to allow for an orderly transition to a new brand".

"We are pleased to have reached a settlement after Microsoft agreed not to appeal the trade mark infringement judgement in relation to its SkyDrive service," Sky told Pocket-lint in a statement. "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."

This is the second time Microsoft has had to change or cease to use a brand name in recent times. It had to stop calling its tile design for Windows 8 and Windows Phone "Metro" because of German company Metro AG's disapproval and possible legal challenge. The Redmond company decided to change the moniker before going to court in that case, however.