Ray, that is the shats mate, and I've seen it too many times before. Unfortunately, it seems there's little you can do other than ask them to stop and threaten a C&D with legal whoozeewah.
There's been discussion over on Port 80 (
http://forums.port80.asn.au/showthread.php?t=12664) where a guy's been blatantly (!!) ripped off twice. Brutal.
Good luck with that.