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i'd straight up tell them to find a large foreign object and stuff it up their fucking ass. explain to them that it is no longer their property, they chose to SELL their own image for resale, and that property is no longer legally in their control. Give them the option to buy it out if they'd like, don't undercut yourself either. Sell it to them as exclusive. Explain to them politely (or not so politely, it doesn't really matter) that you have all the legal binding authority over said content, and send them on their way...
Take all the old content, and put it together into one site so you can recycle it further, or sell it off as semi exclusive to other webmasters to use in the same way...
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