Just make sure that you will optimize your site better so you will have a better ranking in Google than your copy cat. It will take a lot of time to be wasted running on them; I know its hard to shrug it off but if you have a business to run to, focus your time and effort on this one instead.
Of course you can fight it! What do you expect hosting companies to do when you just state a story with few details? Do it the right way! File a DMCA complaint. This will help the hosting company co-operate with your legal demands (as even stated in most hosting companies' TOS, using copyrighted materials without authorization is illegal and leads to account termination/suspension.) If you need help with that DMCA complaint, you just let me know!
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