Microsoft Ltd. is the only company that can use the name Microsoft in Portugal. It registered its name in 1981 while Microsoft Corp, the world's largest software company, began operating in Portugal in 1990.
U.S.-based Microsoft is registered as MSFT in Portugal."
How does this work, is microsoft.com acccessible from portugal or ...?
The article doesn't specifically mention trademark, and MS has had the domain since 1997. Not many trademark holders were tuned into domains back then. Even if there was a sunrise period in 1997 not as many people would have paid as much attention as they do today.