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Topics - NotCoolGetty

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I've read a number of posts in these forums, but I still can't seem to get a handle on what my best course of action here is.

I have a very small business and built my own website.  The business is animal related, and I originally added images of dogs to the site that I found on a "Free Wallpaper" site.  For back-up, I dragged any image I found on the site into Google search to make sure the image was widely used, and used by all types of sites, businesses, etc.  I (perhaps incorrectly) assumed this meant the image was "safe".  None of the images I used had any watermarks or other markings for copyright. 

Yesterday, I received a letter demanding $1,175 for a single image.  This image is on 1000's of pages online at high resolution (clearly not licensed on most), was found on a free wallpaper site, and has no markings.  I had actually even removed the image prior to receiving the letter, so it's not even on my site anymore.  Stupidly, perhaps, I called Getty and told them I had no idea, I got it from a free wallpaper site, and it wasn't there.  They offered me a $940 settlement if I paid within 7 days.

My understanding is that a company is required to protect their copyright, and that, at a point where an image is saturating the web unlicensed, the company has in effect not protected their copyright, and has therefore lost claim to said copyright.  At the same time, I have neither the time, nor the knowledge, to fight this in court. 

Simply put, for those of you who have a superior knowledge on the subject, do I pay?   

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