While I completely understand your decision to pull it; both their decision to flex their legal arm and your decision to not stand your ground are equally disappointing.
Please feel free to ignore everyone here. You made a Cool Thing, it didn't work out, whatever. You'll probably make more Cool Things in the future and I hope they'll stick!
Not to be mean, but there isn't a next time. You could still stand you ground now — you haven't removed it yet, and still don't have to.