Thanks for some insights guys.
I don't believe we will ever use any kind of stock photography again (it's super corny anyways), we will just make our own content. This all sounds like an elaborate scam. Just googling the words "extortion letter" gives nothing but thousands of results of "the getty letter". No question, these folks have the right to protect their copyright, but this appears to be a phishing expedition. If proving successful, I can see other companies doing this going forward. There is so much out there! I bet even the color of my house is somehow copyrighted. Shit, I think there is a few people I need to threaten to sue just thinking about it.
I have a few questions if anyone can help:
How much is typically accepted for settlements on these cases, in my case one image?
Is there any reliable way to find out if an image is listed in the copyright office? I searched by title, the original photographer (who is does not live in the US) and all the keywords I could think of and so far, nothing. I think I would go ahead and ignore these letters if that is the case as even if they sued me, I would only be liable for the actual damages. The image currently shows an amount $180 on getty's website. I suppose I could ask for the registration number, but then they might play coy.
Being that this the "first" letter, in your opinion (not legal, just yours from experience) do you think it would be wise to respond or wait for the court summons? I found several sample respond letters on the net, the most famous one includes the verbiage that admits fault (which I find incredibly strange). My thoughts were, buy the original (not that it matters obviously), show that you have it without acknowledging that you just purchased it (oh yeah have it, looksie). Let them do their due diligence, and wow, if they decide to sue, how lame that would look to a jury. "An unknown blog with 5 total articles sued for a single stupid picture, of which, they later purchased".