"Artists Beware"

a follow up to this entry --> http://community.livejournal.com/artists_beware/362396.html

Basically, the owner of a nightclub approached me, asking to use an old picture of mine to make into a sign and merchandise for his club (such as cards, entrance passes, and shirts). The picture is a fairly simple vector-ish image, here --> http://teraphim.deviantart.com/art/Omega-s-Halo-18753224?q=&qo=

He has "reminded" me numerous times that I would still retain rights to the image to do with it as I please, I am just "releasing it for his use".

Here is part of his latest e-mail to me:

"As for concerns, I don't really have any as I said the other day I feel that all rights should and would be retained by you and use of the image by you or anyone you choose is totally at your discretion.

More than anything, I appreciate an artist's talent and I think you are one. Honestly, I probably could have ripped it off the internet and used it and you might never have known but I wouldn't feel right doing that, after all she came from your creativity and ability not mine. Thought maybe you might allow me to use the image for $200.00? Let me know what you think. Hope you're having a great day!"

I honestly feel insulted, both by the low price and by him playing the bigger man just because he didn't outright steal the image. I have no idea how to go about this now, and I don't want to speak rashly out of anger. Absolutely any feedback on the situation would be great - should I just walk away from this deal altogether? Should I try and talk to him about raising the price? :(

edit: just wanted to mention that I will be watermarking my work soon, but it won't do anything for this particular case - I know he's already saved the image because he has used it for mock-ups.

Hey there,

I was commissioned a bit ago for two gryphons in a fighting scene with a 'robin hood' doberman anthro after this person won an auction of mine for this style commission from furbuy/furbid and was looking to find this person as my email with all the details, paypal etc has been hacked and everything deleted.  This person has already paid and to stop this inconvenience i'm offering to RETURN the money as the paypal they sent it to was shut down, therefore i'm unable to find their paypal to return it to and I cannot access my account at all.  I have a new email, and its akemi_inukami@hotmail.com if you want this refund! 

I'm highly upset about this but have been looking for a while to find this person, I feel giving them the art that I HAVE completed won't be enough so this is why you will be refunded when I find you!