I formed an LLC company with my wife in Washington State, in 2007. Our clients are in Environmental Science and Regional Planning. Many of our clients are Indian Tribes, but also include states, counties, and federal agencies. I hold a doctorate in Environmental Science and Regional Planning.
In 2011 we took a contract with an Indian Tribe to develop some software and signed a contract that was "messy" in terms of specifically stating expectations. Under US Copyright law I retained the Copyright to the source code of the program. The Tribe disagrees and has been trying to acquire the copyright for themselves. They do not possess any of the source code as it was never installed on their computers. Under the contract, it was installed on my servers and made available as a SaaS solution.
Long story, but in February I could see that the Tribe desires to extend the dispute and worked to increase our copyright attorney fees to bankrupt the company (we are small).
We closed the company with the state in February 2013. The Tribe recently sent me a threatening letter demanding the source code and a programmer's guide to it (never detailed in the contract we signed). Otherwise, all conditions of the contract were completed by my company.
Our fears are now that as the copyright owner (me personally - registered with the US Copyright office) can the Tribe sue me personally and take our personal bank accounts, house, and all other assets? I feel that since it was an LLC that there is a "liability wall" protecting me. What do you say??