Earlier quoted context omitted.
There's obvious confusion and brand dilution of Moz that can come as a result, and it's our duty to protect our trademark I just can't agree with this assertion. There is not a legitimate fear that you're going to lose trademark protection just because someone is using a similar (but obviously different) name. This isn't the same thing as Xerox or Kleenex turning into a general noun, this is just shameful bullying.
It's not a fear, it's a legal obligation. If we don't protect our trademark in instances like this, where we are aware of infringement, we can be legally estopped from protecting our trademark in future cases.
You should ask them what are the actual risks, and how likely they are to materialize, so that you can make an informed decision. Your lawyers' responsibility isn't to your company's total well-being, but its legal well being. They warn you of legal dangers, but do not consider the cost of protecting you from them -- costs like bad PR. That's why you should tell your lawyers: thank you for warning me, but now I need you to try and help me make a global risk-assessment, one that takes into account all sorts of fallout.