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What does "blocks/spoofs their IPs" mean? Is it name-based virtual hosting, where you share an IP with several other domains?
It's not the customers' fault that their security system relies on unique IPs for each customer. That's a failure to take into account the reality of the shared hosting market. You should at least get a refund.
Hacking the script to circumvent their license enforcement is a textbook DMCA violation, and no web professional who values his business would touch it. I certainly wouldn't.
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