Can copytrack enforce legal procedures

[Perman02]

I received a mail from copytrack in January, regarding copyright infringement for using one of the images of their client.
I used this image 3 years ago, at that time, I was unaware of proper usage of an image, also I did used it from another website (not their client), so I couldn't know the owner first.
I mailed copytrack to check for the image owner and yes it was the real one.
Now, the situation is, I used the image unintentionally for representational purpose and we are a very small blog who made nothing out of the blog. Also, we write just for educational purposes only, no commercial use and the website belongs to India.
I don't know how to pay that much of amount. We told them the situation and also removed the image and every online existence of image. They reduced the price to half and now sent me an automated mail threatening us for legal battle, which will cost us more.
I won't talk anymore with them, I already gave my statement. But their mails are affecting my mind. Can you suggest what to do?

P.s. when I searched for the image in Google, my website is not the only one to use it. There were more than 100 photos that were used by other blogs. So, are they suing them all?

[Robert Krausankas (BuddhaPi)]

It's doubtful they are suing anyone..they look for quick cash from ignorant / uneducated people that mail them statements of guilt, before becoming educated as a knee jerk reaction. Read the forum to get a better understanding of how this works and where it goes, all of your answers have been addressed many times over.

[Greg Troy (KeepFighting)]

Make sure you have removed the image from your blog and server then ignore them. You may receive several more letters from them but they should eventually go away.  Keep reading the forums, there is a lot of great information in here.

[Matthew Chan]

That is the crux of the problem with many people. We provide a lot of good free information here but many people are psychologically unequipped to deal with this type of conflict.  I often tell people, if they cannot emotionally cope with the stress and uncertainty of all this, then you should negotiate to settle. The inability to control your mind and stress levels can be every expensive.

So far, we have not seen any indication that Copytrack or its clients have taken legal action. But obviously that is not a 100% guarantee.  But even if they did take legal actions, it doesn't mean it is catastrophic.  It is simply inconvenient.

As far as I have seen, 99% of all these claims NEVER go to lawsuit. It either gets settled or unpursued.

I won't talk anymore with them, I already gave my statement. But their mails are affecting my mind. Can you suggest what to do?

P.s. when I searched for the image in Google, my website is not the only one to use it. There were more than 100 photos that were used by other blogs. So, are they suing them all?