The couple's spokeswoman told media: "While the duke and duchess are focused on plans to establish a new non-profit organisation, given the specific United Kingdom government rules surrounding use of the word "royal", it has been therefore agreed that their non-profit organisation, when it is announced this spring, will not be named Sussex Royal Foundation".
A spokesperson for the couple confirmed Friday that - despite their hopes to leverage "Sussex Royal" into a billion-dollar brand - they will bow to pressure from Queen Elizabeth and Buckingham Palace to drop the fancy title.
Harry and Meghan's trademark efforts weren't for souvenirs but a new private, financially independent life separate from the Royal Family.More news: Bruins trade David Backes, prospect, draft pick for Ducks' Ondrej Kase
A spokesman confirmed they had reached a final decision, after a USA tabloid website reported there had been frustrations on the part of the Duke and Duchess that it had become "an issue".
At the same time, it emerged that couple had applied for a United Kingdom trademark for the term "Sussex Royal", covering hundreds of items under the categories of printed matter, clothing, campaigning, charitable fundraising, education and social care services.
Since the couple's bombshell decision to break ties with the Family and uproot to Canada, courtiers feared they could rinse their royal credentials for profit.
The event is normally attended by the Prince of Wales, Duchess of Cornwall and Duke and Duchess of Cambridge and is a major engagement in the Queen's calendar. The name "SussexRoyal" is now both the address for Harry and Meghan's recently launched website and their popular Instagram account.More news: Apple wants a book containing secrets about the company to be destroyed
They also applied to trademark the phrases Sussex Royal and Sussex Royal Foundation for use on books, stationery, clothing such as pajamas and socks, charity campaigns and the provision of training, sport and social care.
Prior to their decision to step backfrom the titles and responsibilities of royal life, Harry and Meghan sought to trademark the term SussexRoyal to protect it from others who would like to exploit the brand.
Despite the palace announcing details of how the couple would make their departure from The Firm work earlier this week, the Sussexes' website has not yet been updated to reflect the changes.
At the time, a royal source told HELLO!More news: European Union takes on China, US with plan to dictate global tech rules