Hi

I was hoping someone could give me some advice on this. I incorporated a company in Canada and everything went through; no similar names etc, yesterday we received a cease and desist from a company in the US who has a game whose name is the plural version of our game company and the game name is a registered trademark. They have threatened legal action if we don't change our name however I was wondering what kind of case they have. Their registered trademark includes the following uses:

Illt. Cl.: 9 FOR: COMPUTER GAME SOFTWARE', DOWNLOADABLE COMPUTER GAME SOFTWARE',
INTERACTIVE GAME SOFTWARE', ELECTRONIC GAME SOFTWARE', VIDEO GAME
CLASS 9 (U.S. CLS. 21, 23, 26, 36ANT) 38).

which unfortunately is what we do as well computer games. Can they take legal action even though we never use the actual trademark in our names/website or marketing efforts?

Thank you for your help.