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Personally, I'd chase them on principle, regardless of the paltry sum they are offering. A national newspaper with a dedicated copyright department, should damn well know better. To make matters worse, they are aware of the copyright infringement and have done absolutely nothing to rectify the situation.
If their feet aren't held to the fire, then they'll probably feel they can be apathetic to using anyones' images they like, then drag their heels about payment if caught doing so, as they have done in this case.
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