Legal Question in Intellectual Property in California

If the Terms and Condition (TC) is implemented properly and giving user reasonable knowledge of the TC, Company X is likely going to be sued for contract breach among other claims. Whether it is a Company or a person violating the Terms and Condition in this matter will not really change the website's ability to sue.

Mr. Betinoni is probably correct that the risk of a suit is high, especially if Company X's use of the material it derives is relatively high profile. A more minor usage might get a cease-and-desist letter, whereas a truly trivial use might be ignored or go unnoticed. Whether a lawsuit could be won is another matter, but defending a suit could be very costly and almost as hard on Company X's finances and operations as not defending and losing by default. Being based outside the USA would improve Company X's position for a minor usage situation but makes less and less difference as the prospective plaintiffs' concern and degree of upset increases.