What's this all about? The original agreement (And this is excerpted as EXACT words) was that if it was used, I don't believe this is a case of using it (not commercially, at least) and it doesn't seem as if anything is owed (Why should somebody have to pay royalties on something nobody's even seeing?).
Peter's intentions were clearly stated as this is only a testing ground (Copyrights only come in to play when intellectual property is plaguerised/used in a commercial environment, and he's in no way doing that).
I've worked with Peter in many occasions, I've worked for him, and he's worked for me too. He's a hard worker & honest worker, and he's never done anything to disadvantage any other person, he is extremely fair even when it inconveniences himself.
Just wanted to let you all know my opinion on this situation - the entire point of this thread seems greedy & petty to me.
Daniel
PHP/MySQL Web Developer