Legal Question in Intellectual Property in California
A company sent us a bill for $2k for using a copyrighted image on our website. No cease+desist letter was ever sent. We were not aware the image was copyrighted till their bill. We immediately removed it the same day of their letter (March 2011) but they persist in sending a bill and also noting that it was removed that day in March.
We are very likely to ignore their demand and hope they don't pursue it further. If they do, we can still request to settle for much less. Am I at least on the right path?
1 Answer from Attorneys
As a Franchise Attorney I can say the following. All creative works (like images) are automatically protected by copyright law, but registered works are afforded much greater protection. Copyright law sets statutory damages (damages that do not have to be proven) for unauthorized use of images. These generally range from $1,000 up to $150,000 per infringement (each use of each image). If the copyright is registered, then you can also be liable for attorney�s fees - which can be substantial. Ignoring their demand is not a good idea as they will likely get their attorney involved and the price tag will go up dramatically. You should consult with a good intellectual property or franchise attorney in your area for specific advice and to help you cut the best deal possible under the circumstances.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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