Thank you, Robert.
I guess I shouldn't throw around "public domain" in a forum like this! For clarification, we don't serve ads, though it is a business, not personal site. Also, our argument (which you seem to reject!) is that fashion/beauty experts, commenting on what is trending is educating our audience. We didn't use the image to promote the business, we used it to illustrate the topic. To your point, it would be up to the judge and it could go either way. Shakey case in the end, perhaps.
It's disheartening to hear they would reject the offer. It sounds like, even though they hint litigation is their next move, it never has been. Others here seem to indicate that if I don't pay today, I'll just get another threat in a few weeks. Am I picking that up right?
Also Oscar's post indicates that the courts have not/will not impose "multipliers" or other associated fees to an award. My thinking is that the most they could win is the original amount of $1000, because if the photo was worth more than that, they would ask for more. Is that sound logic? Is Oscar's post still true?
Lastly, Oscar mentions that if I make them aware that we have counsel, they are no longer allowed to contact me directly. I let "Samantha Clemens" know form our second email that I was being advised by my lawyer. Have they broken the law?