Microsoft have withdrawn their application for the .skydrive gTLD, according to a report in The Domains, after losing of a legal challenge that the technology company was infringing on a trademark of the UK broadcaster BSkyB.

BSkyB claimed Microsoft’s use of “SkyDrive” had caused confusion among the public, the BBC reported.

While Microsoft originally said they would appeal the decision, they have “now agreed to change the name worldwide after a ‘transition period’”.

Microsoft and BSkyB said in a joint statement "the settlement of this case reflects the desire of both companies to focus on joint projects to benefit their customers."

“UK owners of Microsoft's Xbox 360 can access Sky's channels via the games console and there have been reports that the two are in talks for a deeper tie-up with the forthcoming Xbox One,” according to the BBC.

“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.”

So now that Microsoft do not have the rights to use the term SkyDrive and have agreed to change the cloud storage service’s name, they have no use for the gTLD.

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