[bogwog]

It is, but this isn't competition. This just copyright infringement.

Competition would be if these people created their own software, possibly innovating and improving it in the process. That would encourage Papermark to improve their own offering, and would create an environment where these businesses are economically incentivized to improve the product or service.

Nobody is incentivized to improve the software in question here. If copyright law doesn't protect anything, then improving your product is helping the competition and potentially hurting your business. Same is true if you're the people who did the infringement.