In today's digital landscape, the ease of accessing and sharing online content has led to a surge in copyright infringement cases that can have serious financial consequences for business owners. With attorneys actively seeking out unauthorized uses of their clients’ copyrighted materials on the internet, it's essential for businesses to understand copyright laws and the potential liabilities involved in using images and other content found online.

Real-Life Copyright Infringement Case

Recently, a business owner contacted us after receiving a copyright infringement notice from an attorney representing a photographer. The letter alleged that the business owner had violated the photographer’s copyright by posting images on his website and social media profiles without permission. The attorney demanded the immediate removal of the photographs and sought $30,000 in damages due to several years of unauthorized use.

This situation is not uncommon. Attorneys often scan the web for their clients’ copyrighted works, sending demand letters to businesses they find using these materials. Without proper copyright knowledge, business owners can easily fall into these legal traps, resulting in costly settlements.

During our consultation, the business owner explained that he was unaware the photos were copyrighted. Years before, one of his employees had downloaded the images from the internet and provided them to a social media management company. The company then uploaded the photos to the business’s website and social media accounts without verifying copyright status.

The owner believed the social media company would be responsible for any legal issues. However, their contract clearly stated that the business owner was responsible for ensuring all provided content had appropriate licensing. This meant the business owner was solely liable for the infringement—even though the use was unintentional.

Why Ignorance is Not a Defense

Many business owners mistakenly assume that images found online are free to use, especially if there are no visible copyright marks. However, copyright protection is automatic and does not require visible notice. Downloading and using copyrighted materials without permission, even unknowingly, can lead to significant legal risks and expensive claims.

Potential Costs of Copyright Infringement

In this case, the business owner’s insurance policy fortunately covered the infringement claim. The insurance company's attorneys negotiated a settlement with the photographer’s attorney, avoiding a potentially larger payout. If there had been no insurance coverage, the business owner could have faced a settlement costing thousands of dollars, even if the claim was negotiated down from the original $30,000 demand.

Copyright Basics for Businesses

Understanding the basics of copyright law can help protect your business from accidental infringement. Here’s what every business owner should know:

• What Is Copyright? Copyright is a collection of automatic and exclusive rights that gives creators the legal right to control how their original works – including photos, videos, text, music and more -- are used. Ideas, processes, concepts, slogans and lists of data usually are not protectable; however, how you arrange or present them – such as on a website – might be. Copyright owners have the exclusive right to reproduce, distribute and display or perform their work publicly.
• What is a “Work Made for Hire?” This is a special type of copyright ownership that applies when an employee creates something as part of their job or a business hires someone like a photographer or writer to create something. It’s essential that vendor contracts include “work made for hire” language.
• Automatic Protection: Copyright protection arises automatically when an original work is created and fixed in a tangible medium. No registration or visible notice is required; however, it’s always smart to include a copyright notice such as: @ [Your Name or Company] [Year].

Avoiding Copyright Infringement

1. Use Licensed Content: Only use images, videos, and other content for which you have obtained proper licensing or permission, and make sure the license covers your intended use.
2. Use Free Content: You can also find free-to-use content such as photographs, recordings and other media via open-source platforms like Creative Commons, Openverse and the Public Domain Image Archive. These sites offer licensed media you can share and use depending on the terms of the specific license.
3. Educate Employees: Train employees on copyright basics and caution them against downloading and using internet content without proper verification.
4. Review Contracts: When working with social media or website management companies, carefully review contracts and clarify who is responsible for copyright compliance.
5. Check Your Insurance: Ensure your business liability insurance policy covers copyright infringement claims.
6. Remove Infringing Content Promptly: If you receive a copyright complaint, act quickly to remove the content and seek legal advice before responding.
7. Protect Your Own Original Content: Any original content created by your team is copyright protected. Add proper copyright notations to your content including websites, images, videos, promotional materials or other documents. You may also want to consider registration with the United States Copyright Office.

Copyright law is complex, but understanding the basics and taking proactive steps can help protect your business from expensive legal traps. Always verify the status of online images and content before use, educate your team and ensure you have adequate insurance coverage. If you receive a copyright infringement notice, consult an attorney promptly to help protect your interests and to work to minimize potential damages.