ALDRICH LAW FIRM Attorneys at law "730 Rittiman Road San Antonio, Texas 78209 info@aldrichiawfirm com Direct Line 210-549-8087 Fax 210-598-7221 AV0370 January 16, 2012 Re: Unauthorized Use of Hawaiian Art Network’s Photograph Dear Sir or Madam, My firm represents the stock photography company Hawaiian Art Network. It has come to our attention that you are using our client’s image (or images) for online promotional purposes without permission, We have searched our records and have not found a valid license for the use of the image(s). Attached for your reference is a copy of the image(s) in question and the usage found on your company's website. As you may know, use of an image without a valid license is considered copyright infringement in violation of Title 17 U.S.CSS., the Copyright Act of 1976. Under the Copyright Act you are subject to statutory damages of not less than $750.00 and up to $30,000.00 and attorney's fees. Also attached is a demand representing a settlement that our client is willing to accept for the unauthorized use of the image(s) should no licenses exist. ‘The following action must be taken within 14 days of the date of this letter: Ifa valid license has been issued for the image(s) and use, please provide license information by e-mailing Russell Aldrich at info@aldrichlawfirm.com. This includes the sales order or invoice number of the license purchase. If the image(s) was licensed under an alternate company name, or in the name of a third party — such as an advertising agency — please provide the company name and phone number. The subject line of the e-mail must include your company name as they appear on the attached settlement demand. If you cannot provide proof that the image(s) has been properly licensed, you must cease and desist use of the image(s). In addition, payment for the attached demand amount must be received within 14 days of the date of this letter. Ceasing use of the image(s) does not eliminate liability for payment of fees due. Payment details are included on the demand, and additional payment information is provided below. If you desire continued use of the image(s), please contact us at the e-mail address or phone number listed below. A new license must be issued for the image(s), or use of the image(s) must cease by January 23, 2012. Page 1 of 6ALDRICH LAW FIRM Attorneys at law "730 Rittiman Road San Antonio, Texas 78209 info@aldrichlawfirm com Direct Line 210-549-8087 Fax 210-598-7221 Please read the attached Frequently Asked Questions (FAQ) for additional information, If you do not respond within the timeframe provided, we will presume that you do not intend to do so and will take action accordingly. For questions, or to settle this matter, please contact Russell Aldrich by e-mail at info@aldrichlawfirm.com or by phone at (210)-549-8087. If you believe you have received this letter in error, please contact us immediately. My client spends thousands of dollars to hire models for his photo shoots. The Aldrich Law Firm is committed to investigating licensing infractions to protect our clients and their interests. ‘We hope you understand that protecting intellectual property rights is essential to the livelihood of the photographers we represent. We also hope that your cooperation in this matter is promptly forthcoming. This letter is without prejudice to Hawaiian Art Network's rights and remedies, all of which are expressly reserved. ‘The total amount due is $2790.00 for the past infringement. In an effort to resolve this quickly, we are offering a one-time discount of 10% on this settlement demand if payment is received by January 30, 2012 ‘The settlement offer, less the discount, is $2511.00. Respectfully, funn) Waid Russell Aldrich Aldrich Law Firm, PLLC Reference Number: AV0370 Page 2 of 6ALDRICH LAW FIRM Attorneys at law 750 Rittiman Road San Antonio, Texas 78209 info@alérichlawsfirm.com Direct Line 210-549-8087 Fax 210-598-7221 Frequently Asked Questions If you believe that you have received this notification in error, please contact us by e-mail at info@aldrichlawfirm.com or by phone at (210)-549-8087. Please be sure to provide your name and company contact information, What is the Aldrich Law Firm? Aldrich Law Firm, PLLC represents some of the world's best photographers. We have contractual agreements with photographers to protect their intellectual property interests. Our client’s interests can be found in magazines, websites, and billboards, marketing collateral, product packaging, and mobile devices. Aldrich Law Firm, PLLC is committed to protecting our clients’ imagery from unauthorized use. Somebody else created my company's website. We understand that a third-party designer, former employee, or intern may have been contracted to design and develop your company's website. However, if no licenses from Hawaiian Art Network exist, the liability of any infringement ultimately falls on the company (the end user) who hired that third-party, employee, or inter. Aldrich Law Firm recommends that your company contact the third-party, employee, or inten to see if any licenses from Hawaiian Art Network surrounding the specific use of the images in question exist. Please provide an invoice number or sales order number and our firm will research as appropriate We have removed the images and now consider this matter closed. We appreciate the removal of our client's images from your company’s website. However, removal of the images in question solves only part of the issue, as Aldrich Law Firm will continue to require full payment of the demand presented to settle the matter and avoid further escalation. We found these images on the Internet and thought they were royalty free. The images in question are rights-managed images owned by Hawaiian Art Network. The use of rights-managed images requires an appropriate license covering each and every use. Although royalty-free images are different from rights-managed images, a license must still be purchased for royalty-free image use We didn't know these images had to be licensed. Unfortunately, despite the fact that your company may not have known, this does not excuse your company's unauthorized use, nor does it relieve you of the obligation to pay the demand to settle Hawaiian Art Network’s claim of copyright infringement. We purchased these images from a company we found online as part of a web template. As the end user of our client's imagery, you are ultimately responsible for insuring that you have obtained the appropriate rights to use the imagery. That means that if you acquire imagery from a Page 3 of 6