Forum Moderators: not2easy
Thanks in advance,
MLHmptn
You could write them telling about the copyright issue and what the law says - see what they say. I'd take the site down altogether so they couldn't grab more and call an attorney ASAP.
Thanks again Marcia!
MLHmptn
They contracted you to produce a work, and as they are the commissioner of the work, and own the copyright: this is what the copyright law states as a "work for hire", and you "built it for a company you were working for".
They failed to pay you, which means that they are in breach of contract. Unless there is a clause that states what happens in this case, it is unknown territory and you sort it out by negotiation. There is no general common law rule to work in this situation, but you can refuse further performance of contract, but I'm not sure if you can retract the content. The analogy is delivering a good to a company that fails to pay you: they are in the wrong, but I'm not sure that you can walk into the company's loading back and just seize your goods back. This could be considered tresspass and theft - ownership of the goods is in dispute.
You say that you started your own company and have been reusing the content? Are you allowed to do this, given that as per the contractual agreement, they actually own the copyright?
I'm not sure that you should have deleted the content though, this could actually be bad for you, because if this caused them trade loss, they may be able file a suit against you and seek damages (again, this depends on the nature of the contractual agreement). The fact that they are in breach of contract for having failed to pay you doesn't automatically give you the right to seize your goods back. In the same way, it doesn't seem to give them the right to take your new content for their site, so they are also acting in bad faith.
It seems messy and numerous issues to unroll and sort out. I don't envy you.