Yeah, this kind of thing seems to happen not so infrequently. Lindows was forced to change their name to Linspire after Microsoft complained that it was trading off the Windows trademark.
I remember getting a good laugh out of the corny name that the Lindows people chose to replace it with. I wasn't sure at the time why some of the commercial Linux distributions tend to go with odd, esoteric names like Lycoris and Xandros, but now that I think about it, it might just be because it's unlikely any other company would have chosen something similar.
What's sad is that Lindows was actually about to win that case after a crucial judgement that whether "Windows" is associated with Microsoft's product will be judged by what people thought of the word as of 1985 -- when no one ever heard of Microsoft Windows. Basically Lindows sold out.