Dave said exactly what I was thnking.

Digitally delivered goooods are not covered by Paypal which means the onl redress a buyer has is to do a chargeback through their card provider. If ths is what has happened yo have no chance of winning and should have jst refunded straight away to avoid the extra $15 chargeback fee.

I you mean the buyer has opened a Paypal dispute you can reply by saying there is not buyer protection but if you have listed and sold several of these on the Australian site you risk both ebay and Paypal closing yor accounts.