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There are quite a lot of hits about random projects being called zippy.

Maybe the issue was regarding the comic strip, "Zippy the pinhead"?

My first association was with the character from the UK children's TV show Rainbow: http://en.wikipedia.org/wiki/Zippy_(Rainbow)

I doubt it's a trademark issue, as trademarks tend to be usage-specific. (e.g. Apple Computer vs. Apple Music) It's probably just a matter of Google feeling there are too many different things already associated with the name 'Zippy.'

(I also now have the "Rainbow" theme tune stuck in my head.)

Do you remember go?

Go is common enough that it is untrademarkable. Zippy? Not so much, hence the name change.