Case study

Resolving a copyright infringement demand

McNees helped a small business resolve a five-figure copyright infringement demand for approximately 3% of the amount originally sought.

When a small business faced an aggressive copyright infringement demand, we developed a strategy to limit the client’s financial exposure and achieve an efficient resolution.

Challenge

A small business operating as a single-member LLC received an aggressive demand from a copyright enforcement entity after a single unauthorized image appeared on the company’s blog. The rights holder sought tens of thousands of dollars in statutory damages and threatened to file suit imminently if payment was not made.

For a business generating nominal revenue, the copyright infringement demand represented significant financial exposure. It required a response that considered both the potential legal liability and the economics of defending the claim.

Approach

We evaluated the copyright claim alongside the client’s financial position and practical considerations that could affect any recovery.

Our team developed a negotiation strategy grounded in the company’s limited revenue and financial resources, demonstrating that a substantial damages award would be uncollectible. This allowed the client to respond to the demand based on both the legal issues and the financial realities of the dispute.

Outcome

Through negotiations, we secured a settlement for approximately 3% of the original demand, resolving the dispute without prolonged litigation and saving the client tens of thousands of dollars.

The resolution allowed the business owner to put the dispute behind them while substantially limiting the company’s financial impact.

Why it matters

Copyright infringement demands can expose small businesses to substantial financial risk, even when the alleged infringement involves a single image. Evaluating the claim, potential damages, litigation costs, and financial circumstances can help businesses determine how to respond and identify opportunities for an efficient resolution.

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