makemealive_dk
I don't want to tell you not to consult an attorney but it will be a long drawn out process that will kill your creative spark and passion for the project anyways.
I was just talking with someone last night about how once money or vested interests is involved it is too late to sign agreements. It must be done first. Sorry this had to happen to you. I am sure you learned some valuable lessons that you can't learn in school.
I believe that a name is very important. It is how people identify with your business. If it is difficult to remember your business will have a hard time capturing that very valuable "word of mouth".
I would always suggest putting the money into trademarking your name because then you have a leg to stand on if you want to go after someone sitting on your useful domain.