Received a Letter from Masterfile

[Unemployed]

Hello,

After receiving a letter from Masterfile, and after several days of worry, I got on-line to do some research to see if this was a scam. Thankfully, I came upon ELI in the process!

I am a 59 year old who after losing my job attempted to find employment by opening up an LLC. It is a "one-man" operation - there are no employees, only me trying to earn an income. I even had a website designed and created by a third party - believing it to have been designed with legal integrity (and still believe it to be the case). I was taken aback upon receipt of the demand letter from Masterfile as I would never have knowingly violated copyright law.

I contacted the designer who created the website and he said he purchased all images and in some instances used free images. I immediately requested he remove the image in question, which he did.

I have been without income for a year. I tried getting back into the traditional 8 to 5 workforce but the jobs are few and far between, especially for a person my age. And as stated, above, I tried to find work on-line via the LLC website but it was unsuccessful. Even though the site has remained active, it has received only 1 hit (per an analytical run from it's inception through January 21, 2013). Guess I hoped that it would eventually provide some work for me.

I sent a private message to one of your members who happened to be on line, today. He was kind enough to quickly respond, and did give me some good information regarding my response to Masterfile. This same ELI member also encouraged me to put this in the public forum to get others' opinions. So, following is a draft of my response (via the help of the ELI member). I invite any of your thoughts/comments as they would be sincerely appreciated.

Dear Mr. _____:

As a courtesy, the image in question has been removed while this issue is being investigated. In the meantime, please be advised that the LLC is currently under review to be dissolved as it is a failed business venture. While I research this issue, please provide the following:

•   a complete sales history of the image in question,
•   the method by which you arrive at your outlandish demand amount,
•   current copyright information, and
•   proof that you represent the artist in question.

Failure to provide this information will result in no action taken on my part, and I will consider the matter closed.

Respectfully,

[stinger]

That is an excellent start, Unemployed.

The only thing I might consider adding is something like "I will consider any further attempts to contact me about this issue, without providing the information I requested, as harassment - and take that up with the proper authorities."

The reason I suggest this is that some of the copyright trolls out there, ignore what you send them and continue coming at you from different harassing angles.  It is good to "nip this in the bud", as my old friend Barney Fife used to say.

[Unemployed]

Thank you, Stinger - good information and do appreciate your input! ...and, yes, I too can still "see" Barney Fife saying with passion "you gotta nip it in the bud" with eyes as big as saucers!

[lucia]

I'm not certain, but I think you should not dissolve the LLC until after consulting someone about the copyright issue.  While the LLC exists, I think Masterfile has to sue the LLC. Afterwards.... I don't know. It might be permitted to sue you.  Oscar and the business types will know.

[Greg Troy (KeepFighting)]

You also had mentioned that the web designer said that all images were registered or free, can he tell you which case the image in question was and provide the documentation to you on the image?

[SoylentGreen]

Welcome to the forums.

Yes, Lucia's right.  They'd have to pursue the LLC.  So, keep the LLC going for now.

Be advised that Masterfile is really vicious.  So, you'll have to be strong and hang in there.
They'll put a lot of pressure on you, but you can come here for support.

Masterfile hasn't filed many lawsuits lately.
But, they have sued one guy that said that he was retired, and sued another person that was unemployed and actually medically unable to work at the time.
These cases had to do with multiple images.

Be strong.

S.G.

[Robert Krausankas (BuddhaPi)]

This is why it's important to post these thing in the public..it was me that suggested possibly dissolving the LLC, and apparently that was a bad suggestion! But hey i'm not perfect by any means....Masterfile hasn't filed anything lately because they just had their asses handed to them with help from Oscar, and they are in the middle of figuring out how to appeal this case...

[SoylentGreen]

I don't think that dissolving the LLC is "wrong" necessarily.  That might just fix the problem on the spot.

But, now is a good time to do some homework.
That way, if the LLC needs to be dissolved, it can be done in a way that MF can't "get around".

S.G.

[Unemployed]

Dear stinger, lucia, Mr. Troy, SoylentGreen, and Mr. Krausankas,

First, my sincere thanks for your input - this forum has indeed aided in the return to a calmer frame of mind.

Secondly, because I was embarrassed to do so, I left part of the story unsaid - I had only shared it with Mr. Krausankas because he came on-line while I was in my initial state of panic which quickly turned to anger at the realization of the outrageous nature of Masterfile. Not only have I been without income for an entire year; I have lost my home and am living with a friend. I have run out of savings and have no health insurance. I have an outstanding medical bill for which I am paying $10 per month. I am at the worst financial place that one could possible be. I have no assets and there is nothing more I can do to produce any cash that Masterfile could lay claim to.

Receiving the demand letter from Masterfile initially cased me to become seriously depressed and I wanted to give up - fact is, I almost did. But you people became the light at the end of the tunnel and I am so very sincere when I tell you that you have my heartfelt thanks for all you do - not just for me, but for all those who find themselves caught in this type of legalized extortion. This forum helped me to get past the self-pity and move to outrage over this type of scare tactic and bullying.

Again, you have my thanks - and my respect.

[Robert Krausankas (BuddhaPi)]

Dear stinger, lucia, Mr. Troy, SoylentGreen, and Mr. Krausankas,

First, my sincere thanks for your input - this forum has indeed aided in the return to a calmer frame of mind.

Secondly, because I was embarrassed to do so, I left part of the story unsaid - I had only shared it with Mr. Krausankas because he came on-line while I was in my initial state of panic which quickly turned to anger at the realization of the outrageous nature of Masterfile. Not only have I been without income for an entire year; I have lost my home and am living with a friend. I have run out of savings and have no health insurance. I have an outstanding medical bill for which I am paying $10 per month. I am at the worst financial place that one could possible be. I have no assets and there is nothing more I can do to produce any cash that Masterfile could lay claim to.

Receiving the demand letter from Masterfile initially cased me to become seriously depressed and I wanted to give up - fact is, I almost did. But you people became the light at the end of the tunnel and I am so very sincere when I tell you that you have my heartfelt thanks for all you do - not just for me, but for all those who find themselves caught in this type of legalized extortion. This forum helped me to get past the self-pity and move to outrage over this type of scare tactic and bullying.

Again, you have my thanks - and my respect.

"This to shall pass" hang tough..I'm a firm believer things happen for a reason, a positive reason..we may not "see" that reason now or in a month, but somewhere down the road, you'll be able to look back and see it...

[lucia]

I am at the worst financial place that one could possible be. I have no assets and there is nothing more I can do to produce any cash that Masterfile could lay claim to.

Well... that would make it seriously difficult for them to collect! 

Still, no one needs this sort of complication in their lives.

[Jerry Witt (mcfilms)]

Hey Unemployed, keep your chin up.

I have a theory that the stock agencies in general and MF in particular tend to target people they suspect will roll over easily. Even if they are unable to prevail in court, if they can just get some people to not show up and get a few default judgements, it makes it look as if they are "winning" cases.

So you have to make it very clear that you will not be rolling over.

Besides, as Lucia points out, you are essentially "judgement proof." I think you are on the right path. Reply with a strongly worded letter, stay connected to the ELI forum, and concentrate on your core business.

[Greg Troy (KeepFighting)]

Stay strong and hang in there.  Masterfile is a totally different animal than Getty and they are more aggressive but I agree to that you are “Judgment proof”. Keep reading the forums and asking questions and you should be fine.

[SoylentGreen]

Something to keep in mind...
If you're living with a "friend", it will be extremely difficult for anybody to send you anything in an "official" capacity.

You'll likely never get sued; but lets just say that they wanted to file just to scare you.
Just tell your friend not to accept any papers or deliveries on your behalf, and not to confirm to anyone that you reside there.
They'll probably never be able to serve papers on you. lol.  Also, it's not illegal to avoid "service".

I got sued when I was sick and not working.  I was staying with family at the time.
They never properly served me, and they had to give up eventually.

S.G.

[Unemployed]

Hello, everyone - Unemployed, here. Folllowing is a copy of an email I have received from Geoffrey Beal (if that is a real name) after I sent my initial response to their extortion letter:

WITHOUT PREJUDICE (for Settlement purposes only)  FRE 408
 
February 4, 2013
VIA EMAIL
 
 
Re: Copyright Infringement
 
We are in receipt of your letter dated ....
 
We appreciate that your company has ceased all uses of the image. Thank you for responding so promptly. However, to fully resolve this matter, payment for a retroactive license is required. As exclusive licensee, Masterfile has the right to protect and enforce its interest in the image, and is entitled to the remedies provided by the Copyright Act.
 
The image listed in the claim is a rights-managed image, which is more expensive than other kinds of images because when a rights-managed image is licensed to a client, Masterfile must keep a detailed history of how the image is used.  This is a valuable feature of rights-managed images as it allows clients to know who else has used the image and it avoids competitors using the same image in their promotional materials. Providing false information to our clients may seriously jeopardize our credibility with our clients and our business protocol.
 
Had the image been licensed properly, prior to being published on your website, you would have been charged a fee of US$970.00 for the same rights as those reflected in our Claim.( Secondary page - 1 year term)
 
Our standard unauthorized fees start at a 1 year license plus costs.
 
You can verify this by visiting our website at www.masterfile.com and using our publicly available online calculator to calculate the regular fees associated with our rights-managed images. Enter the image code 700-01112954 into the Masterfile search engine. When the image appears click on it. At the bottom of the enlarged image you will see an icon with a $ sign, click on that icon. Enter Internet, Web Promotion, Secondary page, World, World, Up to one year, and you will see the price $970.00 per image below.
 
Our claim for US$1,940.00 is based on our Terms and Conditions which provide for a 2X multiplier of our standard license fees for unauthorized uses of our images (please refer to Section 5.6 of Masterfile’s Terms and Conditions at http://www.masterfile.com/terms.html#5).  Masterfile’s position is that at a minimum our damages should be measured the standard license fees that Masterfile would charge for the same use of the same image.
 
Please note our copyright in the image related to this matter, I have attached a copy of our Certificate of Registration VA 1-407-986, issued to us by The Library of Congress, United States Copyright Office for the registration of Masterfile’s rights-managed image  700-01112954 (Artist: Bill Frymire, Bar Chart on Grid). Masterfile registers all of its rights-managed images with The Library of Congress, United States Copyright Office based on the Copyright Office’s directives and filing requirement protocols.
 
I have also attached redacted copies of our Artist Agreement with Bill Frymire, the artist related to this matter, for your review.
 
Notwithstanding the foregoing, Masterfile is willing to resolve this matter for the sum of One Thousand Two Hundred United States dollars (US$1,200.00). This proposal is based on Masterfile’s standard license fees and the fees that Masterfile has incurred in pursuing this claim, including fees that we must pay to the third party who discovered this image on your website.  Please respond to our proposal to settle this matter by February 11, 2013.
 
Our position is to negotiate a fair, balanced and reasonable settlement for our artist, Mr. Bill Frymire. Artists such as Mr. Frymire are professional photographers who rely on the royalties they receive from the licensing of their work to earn a living.
 
This letter is an attempt to settle this claim.  Masterfile reserves all its rights and remedies whether legal or equitable.
 
Sincerely,
 
Geoffrey Beal
Copyright Compliance Officer
Masterfile Corporation
3 Concorde Gate, 4th Floor
Toronto,Ontario,
Canada, M3C 3N7
416-929-6745 (ext. 2276)
416-929-2104 ( FAX)
800-387-9010 (ext. 2276)
gbeal@masterfile.com
http://www.masterfile.com
 
WARNING: This e-mail message is intended only for the named recipient(s) above and may contain information that is privileged, confidential, subject to copyright and/or exempt from disclosure under applicable law. You are hereby notified that any unauthorized use of this transmission is strictly prohibited. If you are not the named recipient(s), please immediately notify the sender and delete this e-mail message.
 

At first I became "ill and nearly sick to my stomach" upon seeing this email and stayed that way for several days. I've not even really read the email as it was too stressful so I then put it out of my mind. Today, however, I thought I'd put it out on the forum.

 I've finally come to the conclusion that there is simply nothing I can do in the way of a response to this type of bullying. As mentioned earlier, I have no job, no home (staying with a friend) and I have no more savings. I certainly cannot afford an attorney and if and when they pursue this, they will discover that I have no way of paying anything. So, I've decided not to respond at all. They can do whatever they want. I'm too weary to deal with this, so I'm just not going to acknowledge it. Not sure if this is the best way to handle this, but this is what I am thinking at this point. If anyone has any other thoughts to share, they would certainly be appreciated.

Kind regards,
Unemployed