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I need some advice from someone with experience with copyrights.

I used to use a certain place online (Company X) that lets you upload your images, have them printed on merchandise, and then sell the merchandise. One of the other people who sells merchandise there took a photo of her dog and put it on merchandise on her store. She later discovered another store at Company X had a copy of her image (after running it through a couple Photoshop filters). When she complained to the owner of the other store, they claimed that Company X had set up their store and had given them the image.

Company X agrees with this. They claim they bought the image from a stock photo place, but won't name the stock photo place. At least that was their initial story on a thread they have since pulled from their boards. Now it's changed to "a stock photo combined with a line drawing" and anyone who questions what is going on is part of "a witch hunt" by people who "don't understand that it is legal for both of us to use the same stock photo". It's unquestionably the same photo of the same dog, and she has never sold it or uploaded it to any other website, so Company X appears to be trying to be trying to deliberately confuse the issue.

1. How long can they withhold the name of the place where they bought it?
2. If they did steal it themselves and give it to another customer of theirs, what are her options?

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