If you live in Israel then they will need to pursue collections and legal actions in your country. Them securing $1,000 judgment against you in California means absolutely nothing. And this pushes the entire product into a different realm. There's export agreements that need to be considered the enforceability of their master service agreement comes into question. All of it is up in the air if you are a citizen of a different country. Even inside the United States a lot of things can come into question if you're a citizen of a different state.

Reading over their master service agreement your best bet for a, no cost to you, resolution is their dispute policy for billing. Which is within 60 days of receipt of an invoice you notified them in writing and that you are disputing it. In this case you're dispute was that you were told this was free therefore you're disputing the entire amount.

This is when billing gets in volved and what you push for is to get someone in senior leadership and potentially legal involved. For a $1,000 bill and you being in another country they should just make this all. Although it will take some haggling. At least that's my guess.