I have just received this email from Backify, which seems to be a direct answer to LiveDrive's advisory against Backify... It seems they didn't like being viewed as frauds and their users being told by LiveDrive not to give them credit card information!
Dear [Full Name],
We are writing to you in regards to the recent action taken by LiveDrive to close your backup/briefcase account.
Backify used to be a reseller for LiveDrive.com's services. Recently we were having some issues with their serive and they were literally unable to provide a solution to our problems. More information about these issues can be read on our homepage at www.backify.com. Tired of the service provided by LiveDrive, we asked them to close our reseller account. It may be noted that at no point did we ask them to close the accounts of our customers. But they went ahead and shut down the accounts of every Backify customer.
For every customer's account, we have paid in advance a full year's fee. So, the step taken by LiveDrive to close our customers' accounts without refunding us is totally illegal, and we are considering our legal options at this time. Since your account was already paid fully for one year in advance, we request you to get in touch with LiveDrive and ask them to restore your service. Their customer support email address is support@livedrivesupport.com
Additionally, we understand that you may have spent considerable time/effort/bandwidth to upload your files to LiveDrive's servers and by deleting your files/data without any notice they may have violated several laws. We also advice you to get legal help in case you suffered losses due to this sudden termination of service by LiveDrive.
Thanks,
Backify Team
This doesn't end well for ANYONE.
I did the numbers for this exact same thing a few months ago - I was going to set up a white labelled LiveDrive and sell it nationally on Groupon/Groupon clones for "1 year, 80% off full cloud backup storage" etc. Obviously the intention is to get them to keep going after the 1 year since their files are already uploaded. Ultimately, although money was there, it just wasn't a good option. As has been clearly shown here, your entire model is in the hands of LiveDrive, and they are in it to make money, not to make peanuts of you and get hammered with costs.