I am so glad that I have found this forum! Such a relief!
In May this year my husband got a demand letter from Masterfile for the usage of their picture on his travel website. It was only one image of Niagara Falls, and they are asking $2790 for retroactive fee. Of course, he didn't know that the image was copyrighted, we are originally from Russia, and we never heard of this, we heard of "piracy" when reproducting and reselling music and video CDs, but not images! He removed this picture immediately and contacted Masterfile with apologises. His business was closed at the end of the year 2010 - he didn't make any profit from Niagara Falls trips for tourists. He had partnership as a type of his business. Masterfile said that they were in a receipt of our e-mail and would contact us shortly. And we heard from them...in 1,5 months, saying that my husband failed to settle down the issue with retroactive license, and they were demanding the full payment within 5 days.
We tried to find an attorney, and contacted several one. All of them said that it would be more expensive to hire them than to pay in full, and they couldn't give any answers on what the options are untill we are their clients. We are not able to hire anyone, we just do not have any money for this.
Anyway, I created a letter for my husband, in which I asked to prove that they have the right for this image, and it was registered by Copyright Office. I asked what affect the usage of the image had on a market that they estimate it for about $3000. I asked them why there was no any copyright sign on the image, as this is misleading for many internet users , also we insisted on innocent infringenet if it occured - we had no ideal about copyrighting the images. Then, we also stated that the businees was closed, no profit made, and the main mean for advertising was using flyers and craigslist postings whiout any mentioning of the website where the image was. The statistics of website visiting was low - about 2000 visits for the homepage and about 130 visits for the page where image was, so I said it would be considered as fairly used.
Now we got a response from them, clarifying all the questions we had - and proving their registrations, agreements, etc. They offered to settle down for $1500.
I don't know what to do. We still don't think that $1500 is fair pay to Masterfile, but if the will proceed in court, we would pay more, as it is still the infringement, innocent or not. We used their price calculator to check their regular license fee for the image - we came up with $740, but not $930*3=2790 as they charge. Are $740 their actual damages? They stated that the amount they were asking for includes regular fee+ actions to find infringement+efforts to force infringement, which sounds reasonable, from one hand.
If anyone can advice something, I would greatly appreciate it. I just want this to go away, as I do not sleep at nights because of the stress it causes. If we pay them, where are the guarantees that they will not send something else?
Hope I can find an answer....
In May this year my husband got a demand letter from Masterfile for the usage of their picture on his travel website. It was only one image of Niagara Falls, and they are asking $2790 for retroactive fee. Of course, he didn't know that the image was copyrighted, we are originally from Russia, and we never heard of this, we heard of "piracy" when reproducting and reselling music and video CDs, but not images! He removed this picture immediately and contacted Masterfile with apologises. His business was closed at the end of the year 2010 - he didn't make any profit from Niagara Falls trips for tourists. He had partnership as a type of his business. Masterfile said that they were in a receipt of our e-mail and would contact us shortly. And we heard from them...in 1,5 months, saying that my husband failed to settle down the issue with retroactive license, and they were demanding the full payment within 5 days.
We tried to find an attorney, and contacted several one. All of them said that it would be more expensive to hire them than to pay in full, and they couldn't give any answers on what the options are untill we are their clients. We are not able to hire anyone, we just do not have any money for this.
Anyway, I created a letter for my husband, in which I asked to prove that they have the right for this image, and it was registered by Copyright Office. I asked what affect the usage of the image had on a market that they estimate it for about $3000. I asked them why there was no any copyright sign on the image, as this is misleading for many internet users , also we insisted on innocent infringenet if it occured - we had no ideal about copyrighting the images. Then, we also stated that the businees was closed, no profit made, and the main mean for advertising was using flyers and craigslist postings whiout any mentioning of the website where the image was. The statistics of website visiting was low - about 2000 visits for the homepage and about 130 visits for the page where image was, so I said it would be considered as fairly used.
Now we got a response from them, clarifying all the questions we had - and proving their registrations, agreements, etc. They offered to settle down for $1500.
I don't know what to do. We still don't think that $1500 is fair pay to Masterfile, but if the will proceed in court, we would pay more, as it is still the infringement, innocent or not. We used their price calculator to check their regular license fee for the image - we came up with $740, but not $930*3=2790 as they charge. Are $740 their actual damages? They stated that the amount they were asking for includes regular fee+ actions to find infringement+efforts to force infringement, which sounds reasonable, from one hand.
If anyone can advice something, I would greatly appreciate it. I just want this to go away, as I do not sleep at nights because of the stress it causes. If we pay them, where are the guarantees that they will not send something else?
Hope I can find an answer....