Court Stops Microsoft From Registering 'Skype' Trademark In Europe

Microsoft (MSFT) now faces the prospect of rebranding its Skype video chat software after European Union General Court judges this week ruled that Skype’s name was too similar to British broadcasting company Sky.

This judgement prevents Microsoft from registering a trademark for Skype’s name and bubble-design logo in Europe. However, Microsoft said it plans to appeal the court’s decision.

“The case was not a legal challenge to Skype’s use of the mark, it was only against the registration,” a Microsoft spokesperson told BBC News. “We’re confident that no confusion exists between these brands and services and will appeal. This decision does not require us to alter product names in any way.”

Sky also commented on the decision: “This [ruling] relates to a long-running dispute with Skype over the extension of its trademark applications to cover a broad range of goods and services that overlap with Sky’s own trademark registrations – including, but not limited to, TV-related products and services. Our intention has been to protect the Sky brand with our research showing that similarities in name and logo have the potential to confuse customers.”

Microsoft previously rebranded its cloud storage service SkyDrive after losing a lawsuit brought by Sky in July 2013. The cloud computing giant said it renamed this service OneDrive “because it is one place for all documents and one place that is seamlessly connected across all devices.”

Microsoft acquired Skype for $8.5 billion in May 2011. Since that time, Skype’s international traffic volume has increased.

Telecommunications market research firm TeleGeography estimated that Skype’s on-net (Skype to Skype) international traffic rose 36 percent in 2013 to 214 billion minutes.

In addition, TeleGeography pointed out that Skype added approximately 54 billion minutes of international traffic in 2013, 50 percent more than the combined international volume growth of all other telecommunications service providers.

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