To be honest, this is great news for you. All this means is that you are on to something. Think about it. You have another company who has a million dollar investment, and the people behind the money must be OK with the path they are taking in your niche industry.
Yes, it's not right to steal stuff, but I would take this as a compliment. Forget about them, and focus on you. If you're lucky enough, they will copy your features again.