Did you scan postcards or other images without permission for your Web site? If so, you could be setting yourself up - and your broker and web designer - for a costly lawsuit. There are artists and lawyers searching the Web right now for just such prey. I've seen six figure lawsuits and five figure settlements. No kidding. Consider the following true story.

Recently, a well-known top agent from one of the biggest cities in the country called me, rather upset. His brokerage, his web designer and he had just been served with a lawsuit for copyright infringement. The lawsuit was asking damages of well over $100,000!

"You're kidding," I said. I thought he was joking. "$100,000? What on earth did you put on your web site, some Fortune 500 firm's corporate secrets?"

"I scanned a couple of those $.50 postcards you see all over the place," he said. I was stunned. He was beyond stunned, to say the least.

Now, I am not unfamiliar with copyright issues. I've had contact with agents over the years who have had to deal with copyright violations. They've scanned photographs from various sources, or just copied the image from another Web site, and did not obtain permission.

Usually, the artist contacts the agent - sometimes directly, sometimes via a "Cease & Desist" letter from an attorney - and demands compensation. Beyond the histrionics, the offending images come down, and the two of them work it out. It typically ends up in a settlement of under $1000. The courts never get involved. That's been my experience until now.

But this artist had a whole new attitude. He was looking for a heckuva lot more money, and willing to be very aggressive about it.

It gets better.

As it turns out, the artist regularly goes after offenders in a similar manner. The agent discovered the artist was responsible for numerous similar lawsuits. The agent and I concluded the artist probably makes far more money from lawsuits than from selling the art itself!

The agent retained top-notch copyright lawyers, but the infringement was clear, according to the judge. The artist wanted maximum compensation under the law, and was willing to go to court to get it. Legal fees could have reached six figures alone. The agent was between a rock and a hard place, so he settled - for a five figure sum. Ouch.

And take note all you brokers and web designers: They had to pay, too. Triple ouch.

How could this happen?

First off, the artists have a point. It's their art, their photographs, their graphics, and if you put them on your Web site without permission, you effectively stole them. In the USA, we protect people's rights to their property; physical, intellectual, or otherwise. You can find more information at www.copyright.gov/laws.

But how could compensation for such an offense amount to a five or even six figure sum? It doesn't seem right. Why can't reasonable people work it out for much less?

There was nothing reasonable about this. The first time the agent heard from the artist was in the form of a lawsuit!

This was an aggressive artist working with savvy lawyers, leveraging the courts and our laws for the greatest possible financial gain.

So look out. I recommend you review your Web site right now, and check the source of every image. The same goes for text. If you don't have explicit permission to use it, take it off.

Published: November 15, 2002

Use of this article without permission is a violation of federal copyright laws.