Site Copying

Someone has recently taken a site of mine and copied it page for page while altering the layout and content within the site. This is my companies portfolio and grant they are using their own work in their portfolio, they are using our home page images / ideas / site content / navigation / and web forms. It is so closely matched they even copied layout of the portfolio, down the drop shadow on the images.

I have contacted the company and they are unwilling to change anything. I have thought about updating our site, but I am afraid this company will just continue to do so out of spite at this point.

We have done nothing to this company besides firing them for what we felt were overcharging for services. (which we paid for by the way.) This is the first consultation we have had since then so I was not aware of a "grudge".

Is this beside just morally wrong, any bit illegal? What would you do if you found a run down company using your hard work to their advantage?

Any advice is greatly appreciated.