Originally Posted by Trixie

If what you quoted the customer as saying is true, that they said the videos needed to have better lighting and not use copyrighted music, and you continued to deliver poorly lit videos that are unusable because of the music, then who cares how long it took them to catch it if the content really is bad? If the customer has been paying you for this many years and if you need/value that business, then I'll break with the pack and say that yeah, maybe you should do something about it (sounds like you have a fairly reasonable plan to compensate them so you don't take a huge hit now).

If video only constitutes a little of what they buy and maybe they weren't planning to use it right away I can see why they might have stowed it away and not have time to catch it. There's really no excuse for selling someone video with copyrighted music in it, though. Is there?

I guess only you and the customer really know the details of the circumstances to make a decision.