A cupcake bakery in the in Brick Walk shopping center downtown has changed its name to settle a federal trademark-infringement suit.

Pink Sprinkles has changed its name to Pink Cupcake Shack as part of an out-of-court settlement with Sprinkles Cupcakes Inc., a California-based chain that filed the suit last summer in U.S. District Court in New Haven.

The Fairfield bakery announced the name change and settlement in a news release. Other details of the settlement were not disclosed.

In its lawsuit, Sprinkles Cupcakes had claimed the similarity in names would likely cause confusion in the marketplace, the Associated Press reported. "The resulting confusion will damage Sprinkles and injure its reputation in the trade and with the public," the lawsuit stated.

Diane Mercado, owner and principal baker at the Fairfield shop, said Pink Cupcake Shack would celebrate the businesses first anniversary and renaming with a "Grand Reopening" on Saturday, Feb. 4. The business had remained open and operated as Pink Sprinkles since the lawsuit was filed.

"I look forward to continuing to provide a quality product under our new name, Pink Cupcake Shack," Mercado said in the news release.

The same release quoted a Sprinkles Cupcakes executive wishing Mercado good luck.

"Sprinkles is pleased to resolve this matter with Pink Sprinkles. We wish Diane well under her new trade name, Pink Cupcake Shack," said Charles Nelson, president and co-founder of Sprinkles Cupcakes.

A portion of proceeds from Saturday's Grand Reopening will benefit SWIM Across the Sound, the charity which raises money to help breast cancer patients with wigs, prosthetics, transportation to medical services, childcare assistance while in treatment as well as cancer education, screening and prevention programs for the underinsured and uninsured.

Mercado is involved in the charity and said the work "pink" in her shop's name stems from the pink ribbons that have become widely recognized symbols of breast-cancer awareness.

In addition to cupcakes, the shop sells cookies, cake bites and made-to-order cakes.