Image Copyright Infringement Notices & Business Purchases

In today’s digital environment businesses frequently use online content to promote their products and services. However, using images without proper copyright permissions can expose them to legal risk.

Increasingly, businesses are receiving emails alleging unauthorised use of copyrighted images and often demanding removal or payment of a settlement. While some claims are legitimate, many are automated, inaccurate, or even fraudulent. Mishandling these notices can lead to confusion, financial loss, and reputational damage.

Understanding what these notices are, who sends them, and how to respond is essential for businesses.

Who is sending these notices?

Several companies, such as PicRights, Copyright Agent, Image Rights and Pixsy, actively monitor the internet for unauthorised use of copyrighted images. They use technologies like reverse image search and automated bots to detect potential infringements across websites, blogs and social media.

• PicRights typically acts on behalf of major media outlets, photographers and stock agencies. They send standardised email notices, often with settlement offers, and tend to escalate if no response is received.
• Copyright Agent operates similarly, focusing heavily on European markets. Their approach includes a formal legal tone and often escalates to threats of court action if demands are ignored.
• ImageRights offers both detection services and enforcement options. Their notices are generally less aggressive but still request removal or licensing fees.
• Pixsy provides a platform that helps photographers track and monetise infringements. Their notices are usually accompanied by detailed evidence and may offer options to purchase a retroactive licence.

While they play a legitimate role in protecting intellectual property, their methods and the validity of some claims have been questioned. Cases have emerged where claims were false, inaccurate or made without proper authority. For example, PicRights has been criticised for sending intimidating automated emails to pressure individuals into paying without verifying the legitimacy of the claim.

Copyright risk in business purchases

When purchasing a business, buyers typically acquire the website and other digital assets, including images. If the seller has not properly licensed these images, or has failed to retain documentation, the new owner may become liable for any copyright infringement claims arising after the purchase.

These risks are often overlooked during due diligence, but they can lead to costly legal disputes after completion.

Mitigating risk in business sale contracts

To protect yourself when buying a business, it is important to address digital assets specifically in the contract of sale. Consider:

• Warranties: Require the seller to warrant that all website images are properly licensed and that supporting documentation is available.
• Indemnities: Include an indemnity clause requiring the seller to cover any costs arising from copyright claims post-sale.

These provisions can offer significant protection against unexpected legal issues related to digital assets. A commercial lawyer will be able to advise you on what is appropriate to include.

Due diligence considerations for those purchasing a business

It’s important to take a close look at the business’s digital assets, especially the website. Ensure all images are properly licensed and request proof where possible. Working with a reputable website developer who understands copyright law and licensing requirements can be beneficial to help identify any red flags.

Performing a digital audit before finalisation of the sale will help ensure compliance and assist in avoiding potential infringement issues down the track.

What to do if you receive an infringement notice?

Not all copyright infringement notices are legitimate, so take a moment to assess the situation before responding. Start by verifying whether the image was properly licensed and gather supporting documents.

Many infringement notices are automated or sent by parties without legal standing, so be cautious. Never admit liability or make payments without legal advice. Sometimes removing the image is the easiest solution, but always assess the claim’s validity and seek professional guidance first.

How to tell if it’s a scam

Fake copyright infringement emails can catch even the most vigilant individuals off guard. If you suspect a fake claim, the following examples may help confirm whether it is a scam.

• Generic or impersonal greeting: Scammers often use generic greetings such as “Dear User” or “Dear Subscriber” rather than your name.
• Poor grammar and spelling: Fake emails often contain grammatical errors, typos, or awkward language.
• Unusual sender email address: Check the sender’s email address for any discrepancies or inconsistencies. Authentic notices generally come from official email addresses associated with the organisation claiming the infringement.
• Urgent action required: Scammers often create a sense of urgency in their emails, pressuring you to take immediate action or face severe consequences.
• Request for personal information: Fake emails may ask for sensitive information such as bank account details or personal identification numbers. Legitimate organisations will never request this information via email.
• Links to suspicious websites: Scammers may include links that direct you to phishing websites designed to steal your personal information.
• Inconsistencies in the message content: Look for discrepancies in the details of the email, such as the copyright owner, the infringing material, or the method for resolving the issue.

A legitimate copyright infringement notice will often contain the following information:

• Copyright holder’s information: The name, address, and contact information of the copyright holder or their authorised agent.
• Identification of copyrighted work: A clear description of the copyrighted work, including title, author, and relevant links.
• Identification of infringing material: A detailed description and location of the allegedly infringing content.
• A statement of good faith belief: A detailed description and location of the allegedly infringing content.
• A statement of accuracy: A statement confirming that the information in the copyright takedown notice is accurate and that the complaining party is authorised to act on behalf of the copyright owner.
• A physical or electronic signature: The signature of the copyright holder or their authorised agent.

Example of a legitimate infringement notice

What if the infringement notice is legitimate

There is a chance that you will receive an infringement notice that is not fraudulent and is in fact genuine. Using photos without proper copyright permission is unlawful and can expose you to legitimate infringement claims. If you receive a genuine infringement notice, it is important to take it seriously and seek legal advice.

CONTACT ABKJ LAWYERS FOR EXPERT ADVICE

At ABKJ Lawyers, we understand the growing complexities of copyright in the digital age. Whether you have received an infringement notice or require advice regarding your business’s online content, our experienced team can assist.

Reach out to us today for clear, practical advice tailored to your situation.