Same Business Name, Service, and State

Hello. I started my business in California over 6 years ago. I just found out about another business in the same state, just a couple of cities over that offers the same exact service. I searched the web and it looks like they have been around for 2 years. Not only did they set-up a business with the same service, they used pretty much the same name. I do not want to post actual names, so we will cal my business "Best Computer Games". They called their business "Best Computer Game". Now maybe I dropped the ball by not registering a trademark, but I am incorporated (S-corp). How can this be legal? I can understand if they were in another state, but we are pretty much neighbors and I feel like they just set-up their business down and dirty to piggy back off of mine. I own bestcomputers.com and they set-up bestcomputer.com. I know dealing with domains is probably a whole different story, but I would really love some advice because I have worked very hard at getting my business up and running and now these people just swoop in and I know customers must be getting confused. Thanks in advance.What is the name of your state (only U.S. law)?

HP Smith said:

How can this be legal?

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The business name was not registered and trademarked.
I guess a good question would be - did they trademark their name? If not, trademark your name. Small business - Trademark Registration - Conduct a Trademark Search for Registered Trademarks - USPTO Stopfakes.gov

Usually, with website names, there is no real recourse because there are so many adaptations/spelling mistakes that can take place.