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they're thieves plain & simple.
Personally, IMO, you need not do anything at all. I think when webmasters see that these people are thieves, they wont use their program. After all, If they can steal a simple little design, chances are there's other stolen stuff.
It does look extremely similar & yes, I say they definately used your design as the basis. They probably downloaded the whole site into an editor & made whatever changes to it. If you have a lawyer friend, have him or her send a C&D demanding change design within 72 hours & if non comliance threaten tort.
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