A well known museum in Germany has modified and created a new font from outlines of one of our fonts. They even used the name of our font in their new font. The museum is claiming they have done nothing wrong. Museum claims that indeed the fonts have similarities with the our font, but in principle represents a newly designed font and claims that under German copyright law it's perfectly legal in what they have done.
Another one of the museum's claims - "there is no such protection as a design for the font family in Germany and the EU. Fonts can only be protected by copyright if they are very exceptionally designed. There is no such unusual styling in this case".
I am unsure about the copyright issue. We do have a US trademark for the font name.
Right now my main focus is that the museum violated a main clause of EULA they agreed to before that purchase the font -“You may not modify, alter, disassemble, decrypt, reverse engineer or decompile the Software or extract its source code. You may not create derivative works from the Software.”
The attached samples is good representation of the the modifications (they modified the entire upper case and and how they line up with the original outlines. The red outline is the modified letter and the black is the original. First sample show them slightly offset, the second sample shows the red modified letter directly on top of the original.
I have asked my US lawyer for advice and she says to move forward we would also need to get a lawyer in Germany.
1st question - Is it true that I have no protection in Germany and the EU?
2nd question -Has anyone here ever revoked an end user license for violation of the agreement?
I'm thinking that if I revoke the end user license I will have more ground to stand on.
What about playing this out on their FB and Twitter pages?