If you don't go after them you compound the problem because you knew they did it. Non action can be construed as permission. Then the next guy will hang his hat on your non action as it being OK. A good attorney in the licensing field will know what to do. I'm sure there are industry standards for fees for that type of photo usage. The guy saved some dough by not purchasing the pics rights and got caught. Looks like you are going to make some money.
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