A California cupcake company has settled a trademark dispute with a rival operator, it has been reported.

Beverly Hills-based Sprinkles brought legal action against a firm in Fairfield, Connecticut, which was calling itself Pink Sprinkles.

This business, which opened in 2009, is now calling itself the Pink Cupcake Shack in order to avoid infringing its rival’s trademark, reports the Los Angeles Times.

“The client had no idea there was anything called Sprinkles Cupcakes, because there were no stores here,” said Alan Neigher, an attorney for Pink Cupcake Shack.

“It was an innocent mistake, and it was resolved amicably.”

Sprinkles, which filed a suit in New Haven in southern California, had claimed the similar names were likely to cause confusion in the marketplace.

This could also damage Sprinkles and injure its reputation in the trade and with the public, the firm alleged.

Cupcake trademark dispute ‘settled amicably’
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