Right, I've fixed the text block lining up with the 'r' (I noticed that as soon as I posted it!) I've also adjusted the kerning, and made the cross lines of the t and f line up with the x height on the r.
My reason for doing a cover page is partly to show off some more artistic work to compliment the corporate work that I've got inside.
"Far better is it to dare mighty things, to win glorious triumphs, even though checkered by failure, than to rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows not victory nor defeat."
-- Theodore Roosevelt
I'm not an attorney, but based solely on what you've written, he most definitely does not own the rights just because he's used your work and not paid you. I mean, that's one of the stupidest arguments...