Masterfile Corporation

[fortunate]

Let me start by saying thank you for being available to assist all of us targeted by Masterfile. Sadly I am now part of the "family". I received the demand letter on September 13, 2010 for (1) image on my puny little web page. The demanded amount for this copyright infringement was $2790. It was amazing  (within minutes) how quickly the "agent" dropped the price to $930. I said I would look at the offer. Well it took the Bozo 2 weeks to push the right buttons and send the "agreement" to my email address. I promptly called and spoke to the agent. I mentioned I had done some research and really believe the "agreement" payment was excessive.  I understand this image was on my web page, but I didn't use it for any other sort of marketing (brochures, business cards etc).If ever there was an "innocent infringer" I qualify. Now, this is were I will admit my stupidity. I allowed my daughter's 18 year old boyfriend to create my little web page four years ago. No surprise I had him help me because my tech skills suck. I would have never even thought about copyright infringements because IT is not my specialty. Fast forward 4 years later and Masterfile enters my life. Any suggestions? The demand letter states I must pay $930 by September 30th. Should I counter with a mid range amount?
Any assistance will be greatly appreciated

[Oscar Michelen]

Please email me your contact info to xxx

[fortunate]

Good evening,
I emailed privately so I my be repeating myself. I so want to resolve this issue but I need some sound advice before I just write the check.
 I am now holding a letter from NCS Recovery Service demanding the full amount of $2790.00. What steps do I take now?
Really can this company collect this incredible amount of money or do you think I should offer a lower amount (the original $930 that Masterfile felt they could live with). Is there a magic number to get these people out of your hair?
I look forward to hearing from you. I think it is time to retain your services.
Email---doris.onnis@gmail.com or call 503-939-5315. Thank you

[wolfwolf]

Our small amateur radio club is a new victim of the Masterfile extortion. We received an email from the company via one of our members notifying us that we were using a copyright image on our website. Our website was developed by one of our members many years ago who had a bit more knowlege than the rest of us in this area. Originally we passed off the email as one of those very clever scams that are popping up on the internet. When we recieved the second letter it appeared that this was probably a valid claim by this company. On doing some research we found the multitude of victims in different forums. We contacted our insurance company to determine if we are covered by our liability insurance. We have recieved a call from the adjuster of the insurance that is investigating the claim, his recommendation is that we wait for the lawsuit to be filed before we do anything and was going to check on coverage for liability in this area.  A local attorney recommends that we respond to the email and try to negotiate a settlement. Not sure what to do at this time. Is an email letter a valid legal notification?  It was interesting that the email has our complete P.O.box address but we have yet to recieve a "hard" copy via the USPS. Is this because they do not want to get the Post Office involved in regard to possible mail fraud? The Masterfile letter also indicates that we as officers of the corporation (we are incorporated for 501c3 purposes) are liable for actions of the corporation. Can they come after me and the rest of the members of the club for their outrageous demands?They are asking $11,132.00 and our club treasury has only $1.300.00 in it. The biggest thing that bothers me is that it was a logo on the website that was informational in nature to the members of the club. We make no money off the website, we are a strictly volunteer organization that provides communication support for the community by assisting the Red Cross, Emergency Government, National Weather Service and a multitude of charitable organizations such as March of Dimes, Leukemia, Mutiple Sclorosis, etc. Any suggestions?

[SoylentGreen]

WolfWolf, sorry to hear about this predicament.  I'm not an attorney or anything like that.  But here's my thoughts.

Usually, you'll receive some threatening emails at first.  Later on, they may choose to escalate it; more emails, papers sent by mail, and phone calls.  You know... they'll try to pester you so that you'll settle out of court.  Suing for money is not their true goal; it's only part of a strategy.  Often, copyright trolls like masterfile don't really get a lot of money if they win a lawsuit; the attorneys often get most of the settlement money (if they are able to collect their legal fees).  But, filing lawsuits scares a multitude of people into settling out of court, and that's where the real money is.

If they decide to litigate, I think that they'd have to sue the corporation; they can't sue individual officers in most jurisdictions.  If your corporation is in fact non-profit, you should be aware that what monies masterfile could collect may be severely limited in some countries/areas.  You should check about this.

Even if they eventually sue you, it wouldn't be too late to negotiate and settle out of court if you choose to do so.

If they did sue the corporation, they couldn't get more than the assets of the corporation, in this case $1300.  After that it's 'bankrupt', and it's over.  They'd get a measly $1300 if they're lucky, and have to eat their legal fees.

If things get dirty, you might consider closing down the corporation.  Then, masterfile couldn't sue some defunct entity.  Then you could open under another name later on.  This may or may not be practical for you.

If you chat with your attorney, bring up a few of these points if you feel comfortable doing so.  It wouldn't hurt.

Masterfile has laid off many employees in recent years, even a bunch when the economy was 'good'.  If you're in marketing, you know that paying huge prices for your images from a place like masterfile might get you fired; I have no doubt that their sales are slowing in this economy.  So, it should be no surprise that we're hearing about so many of these threatening letters and outrageous claims; it's just another revenue stream for them.


Good luck,

S.

[Oscar Michelen]

Dear wolf:

Do not ignore it and do not wait for it to get to a lawsuit.  You are not entitled to any "legal notification" prior to their filing a lawsuit so email is as good as regular mail for notification. You don't say how many images are involved, but I think its best if you at least try and call Masterfile, tell them your version of events and the history of your website and you might get a reduced settlement figure.You can email me or call my office Monday afternoon 516 741 3222 to discuss this in further detail

[fortunate]

Hello Mr  Michelen,

I want to thank you again for your phone call on October 28th. As I told you it was my birthday and having your guidance made my whole day!
I took your advice and made a phone call to NCS Recovery on November 1st. "Ashley" is managing my file. This business must be "rinky-dink", even when answering the phone they don't have the business etiquette to answer with the identity of the business. However, I spoke to Ashley and discussed my limitations for paying the demanded amount of $2790.00. She asked me what I thought would be a reasonable offer, my response was "somewhere between 0 and the reduced Masterfile amount , $930.00. I offered $500-600. Of course she would have to get back to me after consulting with Masterfile. Two days later I call NCS to find out the offer (again, the phone etiquette was lacking). At that point I really wondered if this was a legit collection agency. Ashley comes to the phone, asks what I want. I  told her I was interested in the settlement amount from Masterfile. I also said I found their practice in greeting their customers less than business-like. Probably not the best way to start the conversation---"Dragon Lady" yells "what are you afraid Doris? Do you think I am trying to rip you off? (yes). Why don't you look up NCS info on the web and get back to me". Needless to say I have not called "Dragon Lady" back.

After multiple discussions around my dining room table, my husband is asking me why I don't close the business. The company is a LLC, so would I be held personally responsible for the demanded monies?
Honestly, this little business is a small service. My referrals are primarily "word of mouth". I am not website dependent. So closing this business through the state and feds, close the small bank account  and restarting in 2011 with a new name is not going to impact my future.
Oscar, I guess the big question is, should I secure your services to notify the "creditors" that the business is no longer in existence and there are no assets.
I will say it over and over, I would rather support your fund and drop these sharks on their nose than to pay the extortion money

I know you are a busy man. I will wait for your reply.

Thank you
Doris

[Oscar Michelen]

Sometimes with small closely held LLCs, aggressive creditors will try to prove that it was not validly formed, etc to try and get at your personal assets.  So we always recommend not to actually dissolve or close the business while a claim is pending. That can increase the chances of them reaching your personal assets.  Its best to let it die a quiet death while the claim is pending. Put no more money into it, do all new business through a new corporation, let the domain name and url registration lapse, etc. I would recommend not spending any  more money on this. Just leave it alone and see if they do in fact follow up and file a lawsuit they may not. There would be no point in spending money to have anyone call them to tell them you have no money.

[fortunate]

Thank you Mr Michelen,

Your counsel is so appreciated!
I will make the changes as you listed and lay low and see what happens.

Thank you
Doris

[Oscar Michelen]

Keep us posted!

[TheOGFunk]

Copyright is pretty serious. Do I believe it's extortion? Yes, but that's how it goes. I just finished my negotiations with Masterfile and they were quick to offer a settlement that I could swallow and wouldn't put me in the poorhouse. The process was not unpleasant, actually they went quite well and I was surprised that they are allowing us to make payments. They were very reasonable in dealing with the situation.
   My next step is to go after the third party I hired to do the work!!
Thanks Oscar for all of your time to help small business. you're a good man. (even though your a lawyer) lol.

[Oscar Michelen]

Thanks  OG ( I think).  I have always said that Masterfile is more reasonable in many ways than Getty.  It must be because they are Canadian