I have a domain name, (lets call it XYZ.com) which I have owned for about an year and a related service that I have been developing for about an year too. I just searched the trademark database, and turns out someone filed for a trademark for 'XYZ' on June 15th, and their "Published for Opposition" date is October 23, 2012 (which is a month from now). They already have a product in the market, which is not exactly the same as my service, but it is related. My service is online data backup, and their device is a physical device that you connect to your computer to backup your data. However, their trademark application says
Portable computer storage devices, namely, high-speed storage subsystems for storage and backup of electronic data either locally or via a telecommunications network; blank hard computer discs; memory boards for personal computers, which I think covers my service. They have the XYZ.net domain.
I am planning to launch my service next week. Do they have a strong case to sue me, once I launch? Can I file a "Request to Extend Time to Oppose" before October 23, 2012? Also, do I need a lawyer to file this request, or is it a simple thing that I can do myself? If yes, where can I find more information about how to do it?
What other steps should I take to protect my domain and my service (and myself) from any legal troubles?