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Hi Paul
Client has not heard from them, but its only been 4 weeks since they replied to the original demand - I advised them to ignore any further letters and if they get any phone calls to simply state that they strongly dispute the invoice.
Since then I have also received a letter for my own website! I designed a website for a different client and we bought the license to an image - once the project was complete I featured it in my portfolio section and reproduced a screen shot of the homepage of my clients site plus a detailed section which included the image. The image is licensed to my clients domain, not mine hence the letter. Anyway - I am sending the same letter my first client did and ignoring any further correspondence.
If you read the thread (link in my initial post) on sitepoint you will see that they are not taking anyone to court - just sending out as many of these demands as possible with a very strongly worded legal sounding letter, with the hook that if you settle quickly you get a discount (which should tell you something!) and of course many people panic and pay up.
If its under £5k in the UK they can only go the small claims court and generally having a legal advisor at these things is frowned on by the judge and certainly you cant claim any legal fees other than the court costs (minimal). This wont happen in any case.
If you are in the UK, private message me your email and I will send you text of letter.
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