I received one of these extortion letters from Masterfile last week. I am the sole owner of a very small corporate event company and I do corporate event planning and operation. Purely aside from this, I also plan one-two international trips per year for friends and family. I have a small website which announces those trips to my friends and family (as well as posts information on the global non-profit agency I operate in conjunction with the trips). The photo Masterfile claims I illegally used was on this website announcing these friends and family trips. The letter from Masterfile demanded immediate payment of $3510 or they would take further action. I e-mailed what the website was used for (trips for friends and family) and explained that I copied the photo from a Travel Company in Egypt which must have illegally copied it. There was no watermark on it when I used it to announce a trip. Unfortunately although I wrote down the website I copied the photo from (which I thought I could legally use), when I went back to the web address they no longer had a website. Masterfile contacted me the same day I e-mailed them and offered to "negotiate" so I felt they must have had that in mind all the time. They first offered $1000, then $750, then $500~ each time the "agent" went to his "boss" for approval and then called me back with the "approval". It felt just like the tactics used when buying a car. Finally I was told that if I did not comply immediately further action would be taken. I sent a check. I am not sure why I am posting a message, except that it make me feel less alone to know there is an entire world of this type of extortion going on out there. Is there anything further I can do or should I just let it rest? I feel very taken advantage of and used. I know I was not in the wrong, but felt terrorized by Masterfile's tactics and gave in.