It is ludicrous that they lost this case. Sky is too generic to trademark, and no one was confusing SkyDrive for Sky's services. bSkyb also tried suing Skype back in 2010 but the Skype name persists so I'm not sure why Microsoft gave in so easily. I think SkyDrive is a fantastic name for their cloud storage service. It is easy to say, intuitive, and just rolls off the tongue easily. When paired with the cloud logo, it's perfect. So I'm really disappointed they backed down. At the very least they should've only consented to changing it in the UK (as I don't believe bSkyb has operations outside of the UK, right?).
Can't they just officially rename it "Microsoft SkyDrive" or "Windows SkyDrive" and essentially continue using the name and logo? The only other name I heard being tossed around that I would be somewhat okay with is Bing Drive, but still, it'll be tough to top SkyDrive. That was perfect.