Client used my logo design for a product I never agreed to, then tried to copyright it as theirs

Had a gig 3 years ago for a small coffee shop in Portland. $500 for a logo, plain and simple. Fast forward to last month, I see their Instagram posting merch with my exact logo, but a note says they own the trademark now. They never paid for full rights, contract only said 'for storefront use'. I hit them with a DMCA takedown on their print shop account, and they went ballistic. They claimed I was 'jealous'. I had to dig up my original drafts and timestamps to prove it. I won the takedown, but the bad blood cost me a referral. How do you all handle clients who treat a basic license like a full buyout? Do you add a clause that spells out every single possible use, or do you just litigate when it hits the fan?

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