Encrypting , Key Validation , and Legal Issues.

Alright, First let me introduce myself briefly.

Im a young designer , age of 20 , website owner of www.xtrato.com and a few others.

Basically, i design Php nuke themes and php based themes. As many of you may know as designers, there is a big problem with RE-Distribution of software and digital goods nowadays.

What i decided to do was , to encrypt my source files, with Zend Optimizer and CodeLock Tracker.

What Zend does for you that are not familiar with this software, it encrypts your file source code.

What Code Lock does, it Also encrypts ,but with Base64 , it also adds a key Validation File for the authentication.
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Ok so that’s that.

I have a customer, He was unsatisfied because a free "Add-on" of the theme did not work properly, i told him we would have it done within 2 weeks.

one day before we completed the new "Add-on" He Reversed the transaction.

I emailed him quite a few times letting him know that i already had completed the new "addon" , he never replied.

His "Administration Panel" Runs with authentication of Key , so if i Deactivate his key, for "Violating" our terms of agreement, his Admin panel wont work.

So that’s what I did.

Next day he calls me , cursing telling me that i had hacked his site, that i didn’t allow him to access his site, and that he was going to send his layers etc etc..

I told him ,alright I will activate your key once again so he would remove My Design off his site, so i did, gave him a few days.... a month passed and he was still using my Design.

I contacted him , and he never replied, i contacted his host they didn’t seem to comply with me .

3 months later, i get a letter from HIS attorney, telling me that i had denied administration from his website , he legates 160$ , of which he had reversed and it is now in his position. and they are telling me to write back standing my position.

I need some help regarding this. How far is Hacking~, and what is not.

He is still using my theme without authorization , If i deactivate his site, his admin panel will not work.

He will call me again, etc etc.

So is there something i can do , to get the money back , or at least get him off my back.?

Thanks for looking. I will await a response.