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Originally Posted by russotto
Without knowing the terms under which he did the photo shoot, there's no answering your first objection.
Since the unauthorized use was ongoing at the time he discovered it, the statute wouldn't be an issue.
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When buying images for advertising their are 2 basic types "royalty free" and "rights managed"
Royalty free means you pay a one time fee and you can use it how ever you want. Rights managed are much more expensive (generally) and the fees are based on the type of usage (print, tradeshow etc) the size of the image (2 inches vs 10 feet) the number of time it's used, how long it's used (3 days or 3 months) etc...
Of course this is how things work now with stock photography being so prevalent. I'm not sure what the set-up was 20 years ago.