Buyers deploying unauthorized copies of item

Can someone from Envato explain what is the right procedure dealing with buyers who deploy unauthorized copies of item they purchased?

As per terms of purchase, one license=one installation. In other words, if buyer gets an item and installs it, he is allowed to install a second copy of it only after deleting the first installation. Pretty clear. However… Being authors of an advanced licensing solution, we also use it to protect our own items. And this is where fun begins…

About 5-10% of buyers try to install multiple copies of item, even if they purchased one license. I say try because our product blocks such attempts the same second and notifies us about illegal copy. But other authors don’t have such advantage, so buyers literally rob them. And authors can do nothing about it.

Hence, the question: what is the right way to fight against buyers who violate terms of purchase by making unauthorized installations? Is it OK to disable their original license because of violation of licensing terms and ask them to purchase another one (to ensure they will respect licensing terms this time)?

Some things to clarify:

  1. I don’t refer to localhost -> live setup situations here. It’s perfectly fine if buyer deploys installation on localhost for testing, then removes it and installs item on live website. I mean situations when buyer installs item on and then copies it to or even later, hoping to use all copies at the same time.
  2. Yes, we have full evidence for such attempts. Some buyers with advanced coding skills even try to remove protection code from item (because item must contain editable source code in CodeCanyon) and hope they will surely succeed installing a 2nd copy. Just not with our solution, buddy!

Hope someone can give authors more light on such situations. Thank you in advance.

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