I wrote a similar thing for Virginia Tech for private use. I definitely considered monetizing it but in the end I didn't.

Good luck.

But I think you're going about this all wrong. If you actually wanted to resolve this situation, you should have requested a meeting with the university provost or president and explained your service one-on-one -- with humility. I doubt they were trying to screw you over 'just because'.

It's probably already to late to do this though since you've gone to the media and have made it a big public issue. There's almost no chance that the administration is going to make any concession. The terms of service are written so vaguely they can do whatever they want.