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Get a lawyer. What you're doing may be legal (I believe it is), but you still do need to worry about getting sued. It sounds like they're just trying to push you around, get a lawyer to check what you're doing is fine and respond to them with a letter containing lots of legal noise that basically means "piss off".

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Thanks for the advice!

No prob. I know the Hacker News crowd has a lot of self reliance attitude, and I've been there too, but I've recently been coming to realize that for any legal matter its best to just go to a professional. Its often too far outside of our fields of expertise to be worth the time and effort to become competent in the field, especially because once any real legal action happens, you're going to need professional representation.

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