Software giant, Microsoft has said that it is looking to rebrand its online storage service, SkyDrive following a settlement over the trademark issue.

Microsoft has indicated that it is planning to rename SkyDrive service after reached a settlement with British Sky Broadcasting Group. The UK firm had accused the software giant infringed on its "Sky"  trademark by using the "SkyDrive". Under the settlement, Microsoft will be allowed to use the SkyDrive name until its rebranding exercise is complete.

A court in the UK had ruled that Microsoft infringed on British Sky Broadcasting's trademark. Following which the two sides reached an agreement under which Microsoft had agreed to rebrand its service, which is transforming it into a devices-and-services company. Microsoft has also said that it has decided not to appeal to the decision by the judge.

"We're glad to have resolution of this naming dispute, and will continue to deliver the great service our hundreds of millions of customers expect, providing the best way to always have your files with you," Microsoft said.

British Sky Broadcasting said that the company will continue to protect its trademark from unauthorised usage by other firms.