Litigation - Software Company

[johnn]

I own a PHP software site and something is just happened last week.

I clearly stated on the site wherer the customer places the order saying that "the script is open source software and payment to the software is not refundable".

One person placed the order and requested some tech support for installation. We helped them out and everything is fine. He even said in one of his email that our script is the best one on the market.

On Friday, he tried to apply for an account with authorize.net and they turned him down.

Now he send me an email and requested his money back. I said no to him due to our policy we cannot refund his money due to the nature of the script.

He filed a complaint with Paypal and threated to file more complaints with:
- BBB
- DA office
- FTC
and whole bunch of other law enforcement agencies.

The script only cost $95. I don't mind to refund the money if the script does not work but I can't refund the money because he can't apply for an account.

Any thought?

 

[Mark]

I see what you mean . It's just a merchant site right (authorize.net) ?

If so - You didn't state your software would run with theirs - ?

 

[johnn]

The software will run if you have an account#.

We can't be responsible because authorize.net denied his application!

 

[Mark]

So the buyer is basically threatening your reputation -

"Rock" <--- You ---> "Hardplace"

I personally - would let him go for it - BUT thats just my Temper Speaking - MOST times your rep is worth the refund

 

[Raf]

This is really a hard situation to find an answer too, your best bet would be to get the client to try applying again and see what may have gone wrong. Maybe he didnt enter in something correctly when he was signing up and etc. Try that, if someone else comes out please let us know so we can help you out further.

 

[xclusive]

Just try and have him reapply and then if that doesn't work out your off the hook because you have the terms stated and you are in the right.

 

[armstrong]

This part of your statement caught my eye - "the script is open source software and payment to the software is not refundable". Correct me if I'm wrong, but I thought you couldn't sell open source software. Can you? There's a lengthy legal statement, but in plain language GPL/open source code allow anyone to modify and redistribute GPL-based code, as long as two conditions are met:

1. you do not charge for it
2. you attach the GPL to the redistributed code

If he does not withdraw his complaints, then this part can get you in trouble. In that case, I'd advise you to refund.

But if I'm reading this situation wrong, then I withdraw above advice. Good luck!

 

[johnn]

Amstrong,

I mean the software is open source code. It's not "open source" from open source. I hired people to write the software for me and I own the source code.

It's PHP+SQL like the one RJ has but my software process payments like Paypal.

What make me upset is we spent the time to help him to setup the software and everything is runing as it supposes to. The problem is somehow the merchant denied his application and this has nothing to do with the software.

Many people try to scam the software companies by doing this so they can have the software for nothing.

Anyway, I talked to several people who own the software sites like myself and they suggest me to refund because it's not worth the hassle.

I issued a refund this morning. I just don't understand why people can just be honest.

 

[armstrong]

Ok john, now I understand. Sorry to hear about your lost $$. Yes, it sucks for developers when software is pirated. Do you have anti-piracy safeguards, such as a "call-home" feature that periodically makes the software check with its source (you) and if it fails enough number of times then you can remotely disable? Its not a fool-proof method, but this should take care of most piracy attempts.

 

[johnn]

That would be my next step to include a security in the software.

It's not fair for developers who spent money and time and let other scammers ripped them off.

Well, it's life. That's why we have dictionary: the good, the bad and the ugly.

John