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How should I go about handling a letter I got from a Law firm claiming I infringed on some Photographers copyrighted photo?

I received a letter from a law firm in Calif called Higbee associates stating that I infringed on a photographer ( name listed) photo by publishing it at my blog back in Sept. 2014. The letter demanded $2500 or threatened a lawsuit with 30 days. It was a form letter. I had no intention of knowingly infringing on anyone's copyright and no watermark was visible. I'm not even sure where the photo came from. Anyway, I don't take well to threats from law firms out of the blue demanding money as if I was guilty. It's tastes like extortion, nevertheless I don't want to act in haste. The letter was not sent to be by registered mail.

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