Thanks Mary Jo. :)

>Did you sell the source as is? If so and if they've altered the program
>>enough, it's not illegal to resell it. Don't get me wrong, I think you
>>should definitely pursue this, but after a certain percentage of changes
>>have been made, it's not considered the same source anymore.
>
>This is absolutely incorrect. Copyright law protects derivative use 
>of material as well. The only legal use of copyright material is 
>"fair use" which has specific guidelines that would need to be met. 
>Of course, if the changes were so significant that the source code 
>was totally unrecognizable, it might be hard to make a case that it 
>was derivative. But it definitely is not legal to do it.
>
>The main issue in cases like this is whether the source code is 
>registered or not. While registration is not required by law, your 
>legal recourse is much more limited if you did not register the 
>copyright. It's fairly cheap so I always make sure to register each 
>major release of my software. It's also best to set up your 
>purchasing area so customers must agree to your licensing before 
>purchase so there can be no argument that they know the terms and 
>understood the code was copyrighted.
>
>It always amazes me the dishonesty of some people out there. I have 
>dealt with this issue a number of times unfortunately. In the worst 
>case, I actually had someone email me anonymously to blow the 
>whistle on their employer...they were selling copies of my software 
>to their customers without paying for the licenses. These types of 
>people always think they will get away with it, but invariably, 
>someone realizes what's going on and reports them.
>
>Good luck. Hopefully this is all a misunderstanding but if not, find 
>a good intellectual property lawyer in your area. Usually a 
>threatening letter from a lawyer is enough for most people to do the 
>right thing.
>
>-------------------------
>Mary Jo Sminkey
>http://www.cfwebstore.com
>CFWebstore E-Commerce
>
>

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