Разумеется вместо BrandName там имя вроде моёИмяСофт, а XXX — какая-то другая контора.
Что они от меня хотят и чем это грозит?

This is a formal email. We are the department of Asian Domain Registration Service in China. Here I have something to confirm with you. We formally received an application on October 28, 2014 that a company claimed XXX Ltd. were applying to register "BrandName" as their brand name and some BrandName Asian countries top-level domain names through our firm.

Now we are handling this registration, and after our initial checking, we found the name were similar to your company's, so we need to check with you whether your company has authorized that company to register these names. If you authorized this, we would finish the registration at once. If you did not authorize, please let us know within 7 workdays, so that we could handle this issue better. After the deadline we will unconditionally finish the registration for XXX Ltd. Looking forward to your prompt reply.