Lindows, a firm which markets a user-friendly version of the Linux operating system, has bowed to Microsoft in a lengthy dispute over its name.
The company said it would no longer be using the Lindows name - which Microsoft says undermines its Windows brand - outside the US.
Lindows has faced a barrage of legal challenges from Microsoft over the past three years.
It is already prevented from using its name in much of Europe.
Courts in Sweden, Finland and the Netherlands have ruled against the Lindows brand.
And Microsoft wants Dutch authorities to fine the firm for not blocking internet users in the Benelux countries from accessing is website.
Microsoft has filed similar action against Lindows in France, Spain, Canada and Mexico, as well as the US.
Lindows has now conceded that it cannot keep the brand going outside the US, and says it will unveil a new international identity next week.
The company has been asking users for suggestions on a new name: chief executive Michael Robertson has said he favours Lindos, "because it's the W that's causing all the trouble".
It remains defiant in the US, meanwhile: a conclusive court case on the issue has been postponed pending an appeal from Microsoft.
Lindows remains upbeat on its business model, which is to produce a Linux operating system costing about $60 that will work on desktop PCs.
Around a dozen computer manufacturers now pre-load Lindows on their machines.