What is the name of your state (only U.S. law)? CO
I recently received a threatening cease and desist letter from a law firm representing an aggressive and well-funded client regarding an image I used online. I feel that I would quickly run out of funds if I were to argue 'fair use' in court, so I am wondering if I should even retain counsel at this point. If I simply comply with any monetary demands, are there certain things that I should do or communicate (not admitting guilt, etc)?
It is probably a wise idea for you to have the cease and desist letter reviewed by an attorney in your area.
There is no way to tell, from what you have written, whether this "aggressive and well-funded client" has a legitimate claim against you or not, or, if legitimate, whether the law firm said to represent this client is trying to intimidate you into paying a dollar amount that is greater than facts and circumstances show is justified.
If you used someone's copyrighted image online without the copyright holder's express authorization, and the image was registered in a timely fashion, and your use does not fall into an area that provides you with a good defense, then you could be looking at copyright infringement amounts of between $750 and $30,000 if the matter is taken to court. And the demanded amount could very well be far less than what it will cost you to hire an attorney for a personal review and far less than what it would cost you to take the matter to court. It could be far less than a court would order you pay if any defense you present does not defeat the claim.
However, I do not think it is especially smart to admit to infringing on any material and I would not pay any demanded amount of money just because someone says you have to, even if it
could be smart (and probably is smart) to remove the image from its place online (for the time being, at any rate). You might want to do that and nothing else until you have had the opportunity to have an attorney in your area personally review all facts and, if determined that you have infringed and this "client" has a legitimate action to take against you, the attorney can then advise you of various pros and cons of all options available.
Good luck.
