Say goodbye to Lake Oswego’s Crave Bake Shop. Say hello to Kyra’s Bake Shop.

Also, say goodbye to Crave/Kyra’s legal problems. Kyra Bussanich, founder of the Lake Oswego bakery, said Friday the federal trademark lawsuit she filed March 7 to head off a legal battle with a San Francisco gluten-free bakery has been settled.

In a terse, three-page motion filed Friday, May 17, Bussanich’s attorney, Elizabeth Tedesco Milesnick of Miller Nash, reported that the lawsuit had been settled. No terms of the settlement were disclosed, but Bussanich said she was “extremely pleased with the results.”

The Lake Oswego shop sued San Francisco’s Crave LLC in federal court to block what the local bakery says is a threatened lawsuit on trademark confusion. At the heart of the lawsuit was the question of who really owns the trademark on “Crave” when it applies to gluten-free baked goods, and whether the Lake Oswego bakery actually infringed on the San Francisco company’s trademark.

Milesnick asked a federal judge to declare that the Oregon Crave bakery’s trademark does not infringe on the San Francisco shop’s rights to use the name. She also wanted the court to block any future legal action by the San Francisco bakery against the tiny Lake Oswego shop, which plans to stop using the name “Crave” this summer.

In the next couple of months, Crave Bake Shop becomes Kyra’s Bake Shop. The name change will be timed to the release of Bussanich’s new cookbook, which will focus on gluten-free recipes. She also has a line of dry mixes and expansion plans in the works.

“The new name will start transitioning this summer,” Bussanich said. “With my cookbook about to be released and our new line of dry mixes and the expansion plans on the horizon, I want to funnel all the goodwill I have built up to be associated with my new Kyra’s Bake Shop name as I move forward. Of course, I will retain the trademark on Crave Bake Shop and the website until people are used to KBS.”

A distinguishing name

Bussanich’s shop was a winner on the Food Network’s “Cupcake Wars.” Since 2009, Crave Bake Shop founder Bussanich has been baking gluten-free goodies and selling them from the small storefront on Lake Oswego’s Fifth Street.

Bussanich started the bakery after she was diagnosed at age 20 with an autoimmune disorder that meant she could no longer eat some processed foods. The small Lake Oswego shop earned much of its fame when it appeared on the Food Network’s “Cupcake Wars” program in 2010, 2011 and 2012, winning the cooking competition in December 2011 and May 2012. Bussanich’s shop also was the runner-up in the June 2012 “Cupcake Champions” competition.

The legal fight began in May 2011, when the owner of San Francisco’s Crave LLC sent a letter to Bussanich demanding that she stop using the “Crave” name to sell goodies in the Pacific Northwest (a market the San Francisco company had entered).

Bussanich’s lawsuit was filed two months ago to head off the San Francisco company’s legal claim.

“Frankly, when I chose to use Crave, I wasn’t yet on ‘Cupcake Wars’ or in Food + Wine online or USA Today, and I have since distinguished my products as being unique and delicious, so we wanted to select a unique name and distinguish ourselves as having superb quality,” she said.