Pixsy takes aggressive stance

[TimP]

I received a C&D from a NYC IP law firm that is working for Pixsy. In it, they claim copyright infringement on an image that was part of a sample catalog of mobile websites that I acquired from W3Layouts.com.

They're stating that I not only willfully infringed and profited from the image, but I also distributed the work for its use on numerous 3rd party websites. It's all hogwash, except for the part about a postage stamp sized image being on a website I created. I'm sensitive to copyright issues and maintain a stock photo account, but I mistakenly thought the content from W3Layouts was okay to use based on the verbiage that accompanied the template.

They want a $25,000 settlement.

I think they are under the mistaken impression that I have been selling websites to businesses using a copyright protected image. If that were the case, then they'd have a case for willful infringement. It was never my intent to use those images on any site that I sell, but more importantly, I never made a single sale off of that website. It was a blue sky project and I never put any marketing behind it.

To avoid the potential of future issues, I have removed the catalog completely. But I am wondering now if I should also delete the website. It's a nice portfolio piece, even though it never generated a single sale. Would deleting the website protect me from future infringement letters? Would dissolving my LLC protect me from litigation either now or in the future?

[Matthew Chan]

Who is the law firm? It helps to know. Most won't pursue a lawsuit.  And even if they do file a lawsuit, most won't go the distance.

Regarding dissolving the LLC, it is extreme without knowing all your options. However, if you were to dissolved your LLC (assuming it is small and has minimal assets), the best way is close your checking account and to simply stop paying your annual fees and let the state dissolve it for you.

[TimP]

The law firm is Epstein Drangel LLP.

My LLC is just me, and I was considering a rebranding before this came about. The only real hassle is that I have several subscriptions and payment processing APIs tied to the business account. Other than that, dissolution is $20-$30. My big concern is that I don't know how many other images in that catalog could have been copyright protected. I would like to eliminate further exposure.

[Matthew Chan]

I am not giving legal advice here and I was trying to make my point short but you have not picked up what I said so I will be more direct. My non-lawyer opinion is that if you actively dissolve the LLC it might be problematic because of certain things you have to sign to. Go read what is involved. If you let the state dissolve it by letting the annual fees lapse, you did not sign to any conditions of dissolution.

It is entirely up to you whether the "hassle" is worth the headache. People want nice crispy answers but often, there isn't.  People's priorities, situations, and personalities are different.  People frequently ask me what I would do. Well, I typically do things many people are NOT willing to do and sometimes that is what makes all the difference.

Your branding has very little to do with corporate name. Most people don't realize you can create a brand and presence with little impact from what the actual corporate name is. Companies big and small do it all the time. I've done it many times. It is quite common.

Keep getting educated.  Many strategies to use but too long for me to get into here.

Epstein Drangel LLP is a name I have not heard of before. They might be new to the copyright extortion game.  I will have to take a peek at them sometime.

[TimP]

Matthew, thank you for the response and the clarification. I do appreciate your insight, and all that I have learned so far from this forum.

My reason for bringing up dissolution is because there were several hundred images in that catalog and even though it has been removed from my site, the likelihood that more images infringe, based on at least one infringing, is less than remote. So my question about dissolution really pertains to avoiding future extortion letters based on other images.

And you're right. I did not pick up on that subtle distinction. I will have to read up on Indiana dissolution requirements.

I'm really looking for least cost option. My business is essentially me at my kitchen table with a laptop. I have a few offshore contractors and I am just starting to get some traction. If I am going to make a change, now may be the best time. I'm not saying dissolution is the right solution for everyone. It just seems that riding this out might be more costly. I have much to learn. The temptation to respond to that first letter, explaining why they will be barking up the wrong tree if they pursue, is strong.

[Matthew Chan]

This might not help you now but your issues are common (single member LLC working from home) and is something I have a lot to say about and quite familiar with and know a lot of people in that situation.

I am going to put it "out there" that I will be releasing a Kindle report in 2016 that will go more in-depth on many of the issues you brought up (asset protection and lawsuit protection strategies).  Much of what I learned actually from the world of real estate investing and asset management circles but it can be applied here.

There are too many people who don't know where they stand and their options and very few lawyers are going to educate people on the matter for the simple fact that there is no money in it. And even if they do, most lawyers are too far removed from the streets to understand and relate to people in your position. I am a non-lawyer who knows a lot about "street law". Many lawyers deal on "pie in the sky" theoreticals. I take what I have learned and used over the years and give insights and opinions (not legal advice) of how to apply the information.

I will be releasing a series of Kindle reports will be priced anywhere from .99 to $9.99 and it is going to have "street law" information in a way that I have not seen written anywhere. It will be under the Defiantly Publishing banner.

The ELI Forums will continue to be the leading source of free information but for those who want a very focused discussion and do targeted learning, there will be a nominal charge to support ELI and the work I do.

Trust me, even at $9.99, it is bargain.  One nugget will more than pay for itself when you consider lawyers charge $300/hour and up.

Yes, this post was a bit of an ad but it also happens to be true. I am sick and tired of the little guy getting beaten up and being unfairly bullied legally and judicially for too many years.  I am going to do something about it and start educating people in a big way and Amazon will be helping me do it. I can't do it for free because this is real work.  But it doesn't have to be expensive to get some good quality practical information either.

[zazen]

Can I place an advance order ??   It would be soo satisfying to know that even with the paper wins they won't end up with Jack Sh##. This fail safe back up maneuvering by the little guy ever becomes common knowledge,  it will do  more to threaten the copyright troll species with extinction than all the "'negative " PR combined. They need to know that they will likely end up with nada even if they "win"  a judgement. The sooner the better Matthew...