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I was (a few years ago) in charge of a site with a humming affiliate relationship with a manufacturer of tangible goods.
They've pulled 6 or 8 images directly from the client in their "directory," not hyperlinked but actually stored in their system. The descriptions are pulled from the source as well. But the link to "buy it" goes back to the client.
Ask the guys who trademarked "asprin" or "kleenex" or "xerox" if they saw benefit for ANY use... same holds true with text (websites). Dilution remains the same and in webmaster terms that scrapped text one allows to exist is that dilution. Let it get away, then it's gone...
Do freely admit there is a difference between trademark and copyright. One only lasts 17 years,
the other is lifetime plus 95.
In either case failure to PROTECT ends up exactly the same place.
If they're linking back to you, and still outranking you
Are they shoving adwords or other links into the page?