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.