He stated that ONLY the IP holder or their sole eclusive rights holder can bring action.
Correct save that the judge did not use the word 'sole' just 'exclusive'. This may seem a bit of hair splitting but it is important since, whilst Getty's terms give them 'exclusive' licence, (and contractually a licence that is exclusive is intended to be to that person/body alone, ie 'sole') they do not have to prove that the photographer did effectively give them that i.e. did not breach their licence by giving rights,('exclusive' or not) to others (whether by placing into the databases of other image licensing sites or just giving to others) . The effect is:-
1. So far as their entitlement to issue proceedings is concerned, that 'exclusive' licence is adequate even if the image is, in fact, available elsewhere.
2. IF,as a fact, the image is available elswhere and the defendant can show he acquired it legitimately from the photgrapher/other rights holder, then the claim should fail with the claimant company entitled to claim loss from the photographer for breach of the terms of the exclusive licence.
So seeking out other sites offering the image (how much do picscout charge for a single image search?) or the photographer himself can be a useful strategy.
The actual wording of HH Judge Birss was :-
"A copyright case can be brought by the owner of copyright or an exclusive licensee (see s101 and 102 of the 1988 Act) but the Particulars of Claim does not allege the claimant is either of those. The allegation is that the claimant "represents" such persons."
So you can see that this failed more throgh incompetence on the part of the solicitor in the drafting of the pleadings. The claims also failed because of the solicitor failing to correctly claim for an injunction and for claiming judging by default when the 'default judgment' rules were clearly not satisfied. The solicitor in these cases was a sole practitioner. The firms dealing with the image claims are large major IP firms who are less likely to make fundamental errors.
Let me get to your main point, OWG:-
Am I correct in stating that it is illegal to threaten an action that you can not legally take
Not illlegal as such, where the reason you 'cannot take' the action is a point of law and evidence, but it can be, in extreme cases, a potential breach of professional rules and standards. Most cases decided in court show that one party or the other had no case to take or defend but it would destroy access to justice for the losing party to be held as acting illegally.
I don't see these image case letters as an extreme case. My claim to potential breach of professional rules relates to the claim for fixed costs before any legal proceedings have commenced.
or that you have no intention of taking (The latter ebign almost impossible to prove of course, although it can be used to force the hand of the other party, I.E. put up or shut up, contact me no more)
In theory this can also be a breach of professional rules, but as you point out almost impossible to prove. It is very legitimate to threaten to issue with the primary and dominant intent being to pressure the other party into a negotiation.