It's an interesting scenario, as several people have pointed out: In one sense they have supreme leverage in that they have power over the API etc. At the same time, they have a reputation/brand to protect (damage to which could cost a whole lot more than $250). They've clearly come on strong, adding the threat of discontinuing your access to the API as a pressure cooker.
Ignoring the artificial pressure that they've added, what real incentive is there to accept this deal straight off? $250 isn't a game-changer -- Zillow knows that too. Fight for what you think it's worth.
$250 is absolutely a game changer in another sense, though. They can use his acceptance of payment to show that he is (arguably) making money off of their trademark.
Ignoring the artificial pressure that they've added, what real incentive is there to accept this deal straight off? $250 isn't a game-changer -- Zillow knows that too. Fight for what you think it's worth.