I created a musical recording project for a client using their lyrics over the backing track of a song I’ve already released professionally with copyrights at their request, erroneously thinking it was a personal use project. Now they are asking me to contact CDBaby to give up the copyright so they can post it on YouTube and monetize (YouTube recognizes my recording and won’t allow it). What’s the best way to deal with this? I already offered to rerecord an original take off the song and they refused. Can I send them a full refund even though the project was already marked complete?
UPDATE: The user is now saying that if I cancel the order, they still own the copyright of the piece - but I am reading in the Fiverr policy guidelines that after a cancellation the product delivered is no longer open to their use. So going ahead with the cancellation should solve the issue, yes?