to set the stage: we used to do a basic site layout for our mock ups that was fully functional. put it up on our test server and then give the client access.
did this for a client about six months ago.
called them about 3 days after they had time to review it and ask about their impression.
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ox: Hey, how are you today?
client: Great, got really drunk last night.
ox: Cool, have you guys gone over our mock site?
client: Yeah, but we don't think we're going to use you guys anymore. We'll use your buyout and let our designers finish it.
ox: I didn't think you had any designers that's why you called us.
client: Well we didn't either, but this guy here did something just like yours and he won't charge us anything.
ox: Did he put it up for you to look at it?
client: Yeah, it's just like yours. We had no idea he was that good.
ox: Oh really... could I get that link so I can see his work that's interesting.
client: sure here you go (insert link here)
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Went out to the site and the bastard just went into IE and did a little 'save as' and didn't even take out any of the code it adds.
I had a conference call with our lawyer and myself with the client. We didn't work with them anymore, but they didn't put that site up either.
I never imagined anyone would be soo brass to do something like that and think they could not get caught.