Hi guys, Stock company is demanding I pay them $3800. Need some advice

[Cyrusis]

Hey!

So I've ran in to an issue. A colleague and I just started a business and had someone who we don't know (anonymous) make a quick placeholder picture for us.

I put this picture on the website while we were in just planning and development stage, aka there were no hits to the website and still isn't according to google analytics. We received an email from a company named Master File giving us 5 days to pay up or they will take us to court for $25,000. They did send mail telling us to remove the image and contact them but we never got to opening the letter because we thought it was just spam mail. Either way we still kept the letter in a basket and I opened it today after reading the email, luckily for us the image on the website was just a temporary placeholder and we had removed it before we even received that letter in the mail, or very close to it. Their letter in the mail also showed screenshots of the website and the picture in use.

Now I don't really know how to approach this. I tried to call their contact and discuss terms of cancelling this but he was away until Monday.

We certainly don't have any cash flow (or even a bank account) and we didn't even have the business registered yet while using this placeholder image. It was simply for making a concept of the way the website might look.
Where do I go from here? Should I be scared about their threat for litigation?

On the flip side it's outstanding how mediocre the picture is and that they're trying to charge that much to license it out in the first place.

Thank you so much for any suggestions!

[Greg Troy (KeepFighting)]

Cyrusis,

welcome to the forum, first off let me apologize and say that the forum containing the Getty and masterfile information is currently off-line for maintenance for a few days. As far as the five day deadline goes that is a tactic used to try to frighten you into paying before you have a chance to do any research and find out what is going on.

Masterfile tends to play rougher than Getty Images does but if the case is as you say for a single image used as a placeholder prior to the site going live and you can document this I do not think you need to worry about it going to court. Masterfile will try to frighten you into paying but I do not feel they would take you to court over a single image.

I would not contact them by phone but handle all correspondence by mail as if you are talking with them by phone you may say something by accident they could use against you. Best method of communication is always a carefully worded letter and when the site comes back online in a few days there will be many examples of letters so you may see how to draft a letter for your needs.

Again I apologize for the inconvenience and the site should be back up shortly.

[Cyrusis]

Hi Greg,

Thank you for the response. I was doing many google searches and became quite puzzled because I couldn't access any old issues other users have had. Glad that it will be back up.

I completely agree with you. I want to have just one phone conversation with him and ask him if he will back off willingly because there no intention to make money off that pictures and it was a simple short lived place holder (too low resolution to accomplish it's purpose anyway). If he declines I will immediately end the call by telling him we'll carry the rest of our conversation through mail.

Would this be okay to do?

Thank you!

[Greg Troy (KeepFighting)]

I personally would not engage in any phone conversation with them.  You can ask them the question through mail, I can tell you the answer now and it will be no.  It is all about the money plain and simple.

Hi Greg,

Thank you for the response. I was doing many google searches and became quite puzzled because I couldn't access any old issues other users have had. Glad that it will be back up.

I completely agree with you. I want to have just one phone conversation with him and ask him if he will back off willingly because there no intention to make money off that pictures and it was a simple short lived place holder (too low resolution to accomplish it's purpose anyway). If he declines I will immediately end the call by telling him we'll carry the rest of our conversation through mail.

Would this be okay to do?

Thank you!

[Oscar Michelen]

Do not engage them in conversation, Greg is right. Take a look at our letter program its been highly successful in fighting Masterfile claims

[Greg Troy (KeepFighting)]

Yes, if you use Oscar's program you will not have to deal with them directly anymore nor will they be able to contact you.