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To answer a few questions: There was no watermark on the image. The website designer is not 100% sure where the image came from (it was a few years ago) but generally uses images that are free so either he made a mistake or someone else misrepresented the image. Mrs McT has paid the license...

Thanks for all your replies. The company chasing is called Permission Machine and they have included a letter from Alamy allowing them to act on their behalf. There was a commercial contract to set up the website but it is a one man band and a very nice guy so whilst she could try to drag him...

Time to tap the unfathomable depth of knowledge that is NSC. Mrs McT has a small business and the person who set up the website used some images one of which was (unbeknownst to her) owned by Alamy. The images were not integral to the website so there has been no real financial gain from their...