If my site's design is bit similar or exactly same to some other site.. is there any policy in place for this kind of situation
Only if you use branded images from those sites, Engadget for instance can't trademark the layout of their site or the colors they use, but they can copyright their images, photos they took and used for their site, etc. With that being said you are helping their "Branding" and not your own.
So its not against the law to copy the exact same site, as long as you are not using any of their code / images or graphics? But you can make yours to look identical?
Sure you can make it look identical, but its going to be HORRIBLE for Branding purposes. A company can't copyright the way a site looks in terms of content flow, they can copyright images on that blog, just look up Wordpress Templates for Tech Crunch and Engadget there are tons of look alike templates. Now if you offer the exact same content you will be bordering on unethical.
It could be agaisn't the law it depends on many factors. It most likely will breach Intellectual Property rights, but that depends on different countries on how they interpret it
Design is not the same, as I stated if you use the same images, logos, etc yes. Which means you can't right click, say "save image as" for the image layout and then paste it into the same spots, but you can most certainly put banners, ads, content in the same spots and follow the same flow of information. What exactly are you trying to accomplish, specifics would help
Some people really have no idea :| Copy YouTube and see if Google doesn't sue you lol Read up on Intellectual Property rights also see how many people have been taken to court for copying sites, a simple search will list thousands that have. Companies don't need to copyright their design an established site will have legal recourse in most countries, copying something breaches the international standard adopted by most countries, don't believe me ask a lawyer, but don't listen to people that will say it's fine to steal someones design by copying it. Stealing is stealing whatever way you try and justify it, and all european and western countries adopted standards that protect intellectual property rights.
No is not. They can copy the design (code). You only have the right for images made by you. But think about it a little, if you use WP and another guy uses the same theme (which is free) is no problem for him.
I don't think they are saying they want to steal the logo's/images/other info, but rather the way the site is laid out, which is most certainly not copyrighted, as I stated in my post, you can copy the layout of a site, you just can't copy the actual images and other information created by those sites.
What ever the law is, it's a dumb idea to copy someone. If you actually put some work into it, you may actually come up with something just as good or better. Why would you want to take the chance of anyone looking at your website, and you personally like a leech, thief, and intellectually inferior, because you can't come up with you own ideas?