What to do when someone copies your startup
pandodaily.com
pandodaily.com
Why does this make sense? Because as long as they are using your code, you are always going to be one step ahead, and always have a strategic advantage. As long as your marketing and other aspects are competent you only need to be slightly better to get the lions share of the business, and having a controlled but viable entity in second place will keep more competitors from entering the space.
I see a similar aspect to giving your competitors advice.
Competitors can help grow your market base (by getting people interested in products like yours) and offer a point of comparison during sales meetings. Oh, you've heard of X? That's excellent, because we offer Y which clearly offers your organization a greater value because...