If the dispute is over the usage of 'Creative" and "memories" a NORMAL business would agree to you not using the terms and allow you to continue selling your product.
Did you check their product line? maybe there is something similar?
Since they are paper company I am surprised they even looked at the listings.(PS I saw your listings yesterday, I am an ebay junkie on top of my many other obsessions

Maybe a CM person (not talking about a consultant< I know they had nothing to do with this

sits at home and types in those 2 key words everyday to find a violator..geeze.
Hope you get the issue resolved, and I wish they would go after the ones that deserve it. I mean how many pirated programs, dvds, cds etc have you seen being sold?