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Getty Images Letter Forum / My 1st Copyright Letter

« on: December 04, 2011, 10:39:05 PM »

I received a copyright infringement letter from Hawaiian Art Network LLC demanding money for around $900 for a photo on my website.  The photo was downloaded from a free site that had a download button for the picture and specifically said "feel free to use our large selection of wallpapers, photos, backgrounds for website, blogs etc"  I fell for that and now got this letter saying it was copyright infringement. 
I called them back and told them I had taken it down and was not using it anymore.  They said they could lower the price to $750.   They sent me a screen shot of a license quote from Getty images for use and duration along with an invoice from Hawaiian Art Network LLC.  I am confused on all this?   My understanding is that Hawaiian Art has the copyright but then why is Getty Images have a license quote??
I am thankful I found this website that has given me much needed information but I am still concerned if I settle and pay what they want....even though I feel it is an outrageous amount....how do I know this won't happen again?  The whole "getting legal team involved"  that they said would happen if I don't pay by a certain date scares me!   
Any advice would be greatly appreciated!!