(R)egistered: Copyright Infringement - www.

com final offer to settle

1 message Geoffrey Beal <gbeal@masterfile.com> Reply-To: Geoffrey Beal <gbeal@masterfile.com> To: Thu, Jan 5, 2012 at 12:52 PM

This is a Registered E-mail message signed by Geoffrey Beal. Note: Replies to this Registered E-mail message will be returned as a Registered E-mail message.

WITHOUT PREJUDICE (for Settlement purposes only)

January 5th 2012 VIA EMAIL

Claim PMI

Dear Ms.

Re:

Copyright Infringement

We are in receipt of your email received December 29, 2011

Unfortunately, Masterfile Corporation (Masterfile) cannot accept your offer of US$150.00. Your offer is unreasonable.

First, Congress eliminated the notice requirement for works first published after March 1, 1989 under section 405 of the Copyright Act, which includes the images at issue in this matter. Masterfile includes a copyright notice with all of its works

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available on its website, but it cannot control the removal or alteration of any notice once an image is no longer within Masterfiles control. Under the Copyright Act, the end user is liable for copyright infringement. It does not matter who designed the website. Unless your web designer agrees to assume responsibility for this matter and they have not we will pursue a claim for copyright infringement against you for the unauthorized use of these images. Masterfile is in no position to determine how these images were provided to you or whether they included a copyright notice when the images were provided to you. The fact that there may not have been a copyright notice when the image was provided to you does not mean that there is no copyright protection. Masterfile is in the business of licensing images, which includes seeking compensation for its artists when our images are used without authorization. That is exactly what we are doing. We have nothing to hide.

Masterfile sent you proof of copyright on December 22, 2011 via email. Certificates of Registration are issued to Masterfile Corporation (Masterfile) by The Library of Congress, United States Copyright Office for the registration of our rightsmanaged, copyright protected images. Regarding your statement that you do not believe that our rights-managed image number 700-00918454 is properly registered with a Certificate of Registration number, please note that under Section 410 of the United States Copyright Act, the effective date of registration is the date on which the completed application for registration was received by the United States Copyright Office if it determines that the works are eligible for copyright registration. All of Masterfiles applications for registration have been granted by the Copyright Office. If this is unclear to you for some reason, or you wish to verify our registration of the Masterfile image related to this matter, you are free to contact the Copyright Office directly. Following is a link to their website which contains contact information on how to reach them if you wish to conduct additional research (www.copyright.gov).

With respect to innocent infringement, it is only a defense to the measure of statutory damages and not a defense to liability. Moreover, it is your burden, and a heavy one, to show that you are entitled to the lowest measure of statutory damages based on qualifying as an innocent infringer. Depending on the circumstances, Masterfile may elect to receive actual damages instead of statutory damages. Contrary to your position, your clients use of Masterfiles rights-managed images has caused damages to Masterfile and the artists that it represents as Masterfile has not been able to pay royalties to its artists for your clients use of the images. It also potentially harms Masterfiles ability to license these rights-managed images. For these images, Masterfile needs to carefully track and control their licensed use so that its clients can know if their competitors have used the same (or even similar) images by providing usage histories for rights-managed images. These rights-managed images are more expensive to license than other types of stock images, and the control of their use is vitally important to Masterfiles business. The bottom line is that Masterfiles business is licensing images so it harms Masterfiles business when it is not compensated for the use of its images.

Based on your claim that the image was posted on your website for 25 days, Masterfile is willing to resolve this matter for the sum of Five Hundred United States dollars (US$500.00). This offer is based on your 1 month usage. This final offer to settle for a retroactive license will expire on January 12, 2011. If you wish to accept our offer to settle this matter amicably, please contact me on or before the expiry date.

Be advised that if this matter is not resolved immediately, Masterfile will be left with no choice but to release this matter for further action. In such event, Masterfile will seek all remedies available under the Copyright Act, including statutory damages and or actual damages and all legal costs. Masterfile treats copyright infringement as a serious matter and we are prepared to vigorously enforce our legal rights.

This letter is an attempt to settle this claim. Masterfile reserves all its rights and remedies whether legal or equitable.

Best regards,

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Geoffrey Beal Copyright Compliance Officer Masterfile Corporation 3 Concorde Gate, 4th Floor Toronto,Ontario, Canada, M3C 3N7 416-929-6745 (ext. 2276) 800-387-9010 (ext. 2276)
gbeal@masterfile.com http://www.masterfile.com

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