I have another paypal dispute open for the same guy and the same license... I hope we can recover our money...
Guess I dodged a bullet on this one... PayPal will either try to tell you that they don't protect "virtual transactions" or find the dispute in your favor, but tell you that they were unable to recover the funds. By the time people file a complaint it's usually been a few days after they paid (to give the other party a chance to get back to them) and then by the time PayPal waits around for them to answer to the dispute the funds have been successfully withdrawn. Hopefully you guys didn't pay him with PayPal balance. If you paid him with PayPal and it was funded by a credit card or banking institution, take your disputes directly to them ASAP.
I wrote an article with some tips after I had issues with an ipb seller here. Might want to read that to better understand the dispute process. *Via my HTC EvO 4G*