MemberJanuary 5, 2011 at 7:10 pm
The position is that the producer and user would both breach copyright one for reproducing and the other for using. Your protection is to have an indemnity within your terms which clarifies your position in the event of such a claim against you and that the client has sought the appropriate releases :-
"The customer shall be responsible for obtaining all necessary authorities and consents to reproduce pictures, artwork, photographs, copyright text and/or any other reproducible materials (“Materials”) prior to instructing the company to reproduce the same. The customer shall indemnify and hold the company and its agents and representatives harmless against all claims, demands, actions, costs, expenses (including but not limited to legal costs and disbursements), losses and damages arising from or suffered or incurred by reason of any claim (including but not limited to the defence of such claim) that the reproduction of the Materials by the company infringes the intellectual property or other rights of any third party or misuses the confidential information of a third party."
The likelihood of claim being raised against you is slim due to the costs involved for the other party, more likely is a cease and desist letter from the copyright holders solicitors if they could trace it back to you.
So in summary you are in breach for reproducing copyrighted material without permission but its unlikely to cost you in a one off job. The customer also would be in breach in using the copyright material / intillectual property without permission and again probably a cease and desist notification.
This is all based on a one off basis if you are or the client is banging the stuff out on mass there could be more of an issue.