BSkyB are celebrating this week after winning a court judgement in England and Wales High Court against Microsoft for infringing the “Sky” trademark by advertising their new cloud storage service SkyDrive.
BSkyB started legal proceedings back in June 2011 for infringement of two registered community trademarks and to UK registered trademarks to prevent the Defendants, Microsoft, from using ‘SkyDrive’ as the name for their cloud storage service throughout the European Union.
Background of the Legal Dispute
The legal battle between BSkyB and Microsoft has been a significant case in the realm of trademark law. BSkyB, a leading telecommunications company, argued that Microsoft’s use of the name ‘SkyDrive’ for its cloud storage service was a direct infringement on their established ‘Sky’ brand. The ‘Sky’ brand is well-known across Europe, and BSkyB has invested heavily in building its reputation. The company felt that the use of ‘SkyDrive’ could confuse consumers and dilute their brand identity.
This week’s result comes after an eight-day trial that was held back in April 2013. During the trial, both parties presented extensive evidence and arguments. A BSkyB representative explained:
“Sky is pleased with the judgment handed down today by Mrs Justice Asplin. We regard any unauthorised use of the Sky name as a clear infringement of our well-established Sky brand. We remain vigilant in protecting the Sky brand and will continue to take appropriate action against those companies that seek to use our trademarks without consent.”
Microsoft’s Counterclaim and Future Implications
Microsoft, on the other hand, has also put in a counterclaim in an attempt to invalidate the four Sky trademarks “on the grounds of descriptiveness for cloud storage services.” Microsoft argued that the term ‘SkyDrive’ was descriptive of a cloud storage service that operates in the ‘sky’ or cloud, and therefore, should not be monopolized by BSkyB. However, the court did not find this argument compelling enough to invalidate BSkyB’s trademarks.
The ruling has significant implications for both companies. For BSkyB, it reinforces the strength and value of their brand, ensuring that they can protect their trademarks against unauthorized use. For Microsoft, the ruling means they will need to rebrand their cloud storage service in Europe, which could involve substantial costs and marketing efforts to establish a new brand identity.
The case also sets a precedent for other companies in the tech industry, highlighting the importance of conducting thorough trademark searches and considering potential conflicts before launching new products or services. It underscores the need for businesses to be vigilant in protecting their intellectual property and to be prepared for legal challenges when there are potential infringements.
We will keep you updated on more news within the dispute as it happens. The outcome of Microsoft’s counterclaim and any potential appeals will be closely watched by industry experts and could further influence trademark law and business practices in the tech sector.
Source: Tech Crunch
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