Microsoft has surprised today and announced that Microsoft would rename its cloud storage service i.e. SkyDrive, after losing the case against BSkyB.

A month ago, Microsoft lost the case infringing a patent registered British Sky Broadcasting Group (BSkyB) and forced to choose another name for its cloud storage service.

The Redmond company seemed to file an appeal against the first judgment, but the company has surprised everyone today and announced that Microsoft would rename its cloud storage service i.e. SkyDrive. After the first judgment, BSkyB had allowed Microsoft to use the brand temporarily until the transition of brand name completes.

It’s a quite same situation to that which had forced Microsoft to abandon the use of term Metro — a typography-based design language created, originally for use in Windows 8 and Windows Phone 8 Apps. In that case, Microsoft agreed with Germany’s Metro AG and found solution out-of-court.

However, BSkyB dragged the Redmond Company to court in 2011, stating the term “Sky” misleads British consumers. The broadcaster uses the term “Sky” followed by a descriptive element such as Sky Sports, Sky Digital, Sky Go, Sky Mobile Photos and an online storage service called Sky Store & Share.

BSkyB has also out a press release for the same, which excerpt reads, “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.”

“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,” added Sky. While Microsoft said that they were glad to have a resolution of naming dispute, and would continue to deliver the great service their hundreds of millions of customers.

The “orderly transition” of renaming SkyDrive will take effect all platforms, including to the web version of service in coming weeks. It is expected to see a wave of upgrades that will eliminate all references to the term SkyDrive on the Web, Windows, OS X, Android, iOS, Windows Phone and Xbox 360.

What will be the new name? The question is still unanswered, but it’s likely to be “Microsoft Drive.”

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