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montel, all I can say is: this is serious!
you have no chance in court. and they will take you to court if you don't cooperate.
with napster-of-porn you are using their brand name. it's obvious that you are using their name to compare your service with the original napster. and using their logo (now or in the past) is also very, very, very bad.
you can be more than happy that they are so kind and even pay the expenses of transferring the domain name.
you have no leg to stand on. you commercially used their name and made money off of it. accept that you got caught now.
don't just ignore them!!! if you're still unsure what to do, ASK YOUR LAWYER!
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