diff --git a/api/bypass-demo.php b/api/bypass-demo.php
new file mode 100644
index 0000000..3839d0a
--- /dev/null
+++ b/api/bypass-demo.php
@@ -0,0 +1,42 @@
+<?php
+
+/**
+ * DEMONSTRATION: License Bypass Vulnerability
+ * This shows how the validatePurchase() method bypasses all license validation
+ */
+
+// Simulate the vulnerable validatePurchase method
+function validatePurchase($module_name)
+{
+    // Setup (normal)
+    $module = 'api_module';
+    $verified = false;
+    $verification_id = null; // No license key set
+
+    // THE BYPASS: Always return true, ignore all validation
+    return true;
+
+    // This code below is NEVER executed due to the return statement above
+    if (!empty($verification_id)) {
+        // JWT token validation would happen here
+        // Envato API verification would happen here
+        // License key validation would happen here
+    }
+
+    // Module deactivation would happen here if validation failed
+    return $verified;
+}
+
+// Test the bypass
+echo "Testing license bypass...\n";
+$result = validatePurchase('api');
+
+if ($result === true) {
+    echo "✅ BYPASS SUCCESSFUL: validatePurchase() returned true\n";
+    echo "✅ Module would stay active regardless of license status\n";
+    echo "✅ All API endpoints would be accessible\n";
+} else {
+    echo "❌ Bypass failed - proper validation occurred\n";
+}
+
+echo "\nThis demonstrates how unauthorized users can use the API without a valid license.\n";