It seems to me that making games for the iTunes App Store has become a "red ocean strategy." It's fiercely competitive, and there are now some monster sharks (e.g. King, Zynga). I don't like the sharks, but hey, they're sharks: they're doing what sharks do.
I've experienced countless hotlinkings, rippings, clones, insults, DoS attacks and cybersquattings as a former Flash game developer. Luckily, I have not been involved in any trademark issues, but it is happening also on the web, isn't it?
It's very risky for your business to depend entirely on the closed platform of another business. It really shouldn't be surprising that 'sharks' are ripping off smaller developers in these marketplaces. They've proven to be better adapted to the rules of the game.
Time to look for some blue ocean, I guess.