I think he overreacted a bit, not to having his package name forcibly taken from him, but to being asked to give it up in the first place. Kik explained to him that they have to fight this or lose their tradmark because thats how trademark law works. His response was basically “haha fuck you”. He probably could’ve asked for a couple thousand and just changed the name of his project and everything would’ve been fine.
If you read the books, you’ll find that you’re not far off.