Maybe you dont like what he says, but he is on the right lines.
You do some nice things Kow and you seem like a good guy, so I'd hate to see you come unstuck. I couldn't care less about adam or Zskl - my opinion is offered solely to help you develope a meaningful perspective.
Have you considered what your defence will be? Put simply you have offered his copyrighted material and (crucially) can be accurately identified. Your arguments about the validity of 'lost sales' only have a bearing on the level of damages awarded. The law says you are guilty. If he believes you are able to pay what is there to stop him? He invests his lawyers fees and court costs, knowing they'll be returned several times over at your expense. Your fate will be a warning to others.
His threat to out is ill-considered and demonstrates malicious intent. That he boasts of proactively seeking additional publicity does not look good on him and borders on blackmail and/or extortion, except he's not asking you to pay anything at this stage, simply asking you to take down.
I strongly advise you to comply with his request. Remember to ask yourself these 2 questions:
1) What do you lose if you do comply?
2) What do you gain if you dont comply?
Those urging you to fight are not putting their wallets on the line.
BTW from what I hear, his up front investment is minimal, I'd expect his business to be very profitable.
Your decision mate and good luck.
Bernard 23:08:10 12/16/2008