You get an alarming email: a company says you used their photo on your website without a license and demands hundreds or thousands of dollars to avoid a lawsuit. Sometimes the claim is legitimate; sometimes it is an aggressive shakedown. Either way, understanding what copyright law actually requires keeps you from panicking — or from ignoring a real problem.
How these schemes work
“Copyright trolls” make money by sending demand letters, not necessarily by suing. Some operations scan the web for their images and send bulk settlement demands. A shadier variant works like bait: images are seeded on “free” or stock-looking sites, and after people download and use them, the rights-holder resurfaces to demand payment. The letters are designed to sound like a lawsuit is imminent and to make a quick settlement feel like the safe choice.
What the law actually requires
A demand letter is not a court judgment. For the sender to actually win money in court, several things generally have to be true, and they are worth knowing:
They must own a valid copyright and prove you infringed it.
They must register the copyright to sue. A federal infringement suit generally requires a completed registration, so a sender who has not registered cannot immediately take you to court.
Damages depend on timing. Unless the work was registered before your use (or within three months of publication), the owner is generally limited to actual damages — often just the modest licensing fee for the image — not the eye-popping statutory-damages numbers ($150,000) the letters like to cite.
In other words, the real legal exposure for a single unlicensed stock photo is frequently the fair licensing value, not the thousands demanded — unless the image was timely registered, which changes the calculus.
But do not just ignore it
None of this means using others’ images is fine or that you can shrug off every letter. Innocent infringement is still infringement, some claimants are registered and will sue, and ignoring a legitimate, well-documented claim can let a small problem grow. The goal is a measured response, not fear and not denial.
How to respond wisely
Take the image down promptly if you are not sure you had a license; this stops ongoing use and shows good faith.
Do not admit liability or agree to pay on the spot. You can acknowledge receipt without conceding anything.
Ask for proof — the registration number, the chain of ownership, and evidence of your specific use.
Check your own records for a license, a stock receipt, or an implied permission (for example, if the image was offered as free).
Assess real exposure: is the work registered, and registered on time? That drives whether you face actual damages or statutory damages.
Get advice for larger demands. For a big number or a lawsuit threat you cannot evaluate, a brief consult with an IP attorney is usually money well spent, and often a reasonable settlement (near actual licensing value) resolves it.
This is general information, not legal advice. Copyright disputes are fact-specific, and defenses like fair use or a valid license depend on the details. For a specific letter, consult an intellectual-property attorney.
Frequently asked questions
Do I have to pay a copyright demand letter?
Not automatically — a demand letter is not a court judgment. Whether you owe anything, and how much, depends on whether the sender owns and registered the copyright and can prove your use. Often the real exposure for one stock photo is the licensing fee, not the thousands demanded, but you should not ignore a legitimate claim.
Can someone sue me for an image if they never registered it?
Generally not right away. A federal infringement suit requires a completed copyright registration. And unless the work was registered before your use or within three months of publication, the owner is usually limited to actual damages rather than large statutory damages.
What is a copyright troll?
An operation that makes money mainly by sending bulk demand letters seeking settlements, sometimes after seeding images on “free” sites as bait, rather than by genuinely litigating. The letters are written to make a fast payment feel like the safe choice.
How should I respond to a copyright demand letter?
Take the image down if you may lack a license, don’t admit liability or pay on the spot, ask for proof of ownership and registration, check your records for a license, assess whether the work was timely registered, and get an IP attorney’s advice for large demands.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
Knowing your rights is the first step
Join thousands committing to calmly and consistently exercise their constitutional rights.
