[michaelpinto]

Firstly you should talk to a lawyer, and avoid getting legal advice online.

A good lawyer (and not all lawyers are good) will know the right questions to ask you. A good lawyer might also suggest a strategy that's in your best interests. Although beware of lawyers who look to sue right away and rack up hours. Make sure the lawyers also knows something about tech.

Although there is one thing lawyers have told me time and time again: You can not copyright an idea. Also I'll add that while a good idea is essential to a startup, it's all about execution, execution and execution.

Last thoughts: Write down every lesson from this and move on. I would say one key lesson is that before any money is spent in a business it must be incorporated (doesn't matter if it's a startup or not).

[throwawayuname]

Thanks !I'll definitely talk to a lawyer. Like the idea of writing it down too. Hopefully once things settle down.