We are all for competition. However, it becomes an unfair competitive environment when your competitor's sole strategy is to confuse and deceive users rather than innovate.
In a few cases in the past couple weeks they have been @ replying people who had used us, telling them to use the "real" TwitVid.
Those .com people are really shady. I would never give my password to them. Once the big Tech blogs write up about this, the credibility of the owners are definitely gone. Who would want to work with them?
Nevertheless, why didn't you guys just change the name?
By sticking with twitvid, you opened the door for people to take advantage of you.
Similarly, if you have a domain name, buy both the singular and plural versions. You should even buy the misspellings as well. A good example is RealityPicks.com which redirects to RealityPick.com.
"It’s backed with money from venture capital firm Draper Fisher Jurvetson and a group of angel investors, including Stanford’s Rajeev Motwani (early advisor to Google), Amidzad, former Google employees Georges Harik and Aydin Senkut, as well as XG Ventures, another group of former Googlers."
(From http://venturebeat.com/2009/05/23/twitvidcom-lets-you-tweet-...)
That's a pretty credible group, if you ask me...
I don't mean to be an ass, but if you couldn't meet the asking price for twitvid.com that ought to have thrown up a red flag. Did you have market research/business intelligence on your competitors in the video sharing space before launch?
Did you guys have the name twitvid registered as a trademark?