Tumblr Copyright Issue

Here is the tough part of these types of free Q&A's. When I give advice on these sites, I create legal liability for myself. If you rely on my advice to your detriment, you could come up with an action against me, you could complain to my state bar, etc. To answer this question effectively requires reviewing material you had on your website and considering whether your site is doing something permissable or is doing something violating a right of Tumblr.  Even if the site was still up, that takes significant, uncompensated time to create self-liability. Most attorneys gravitate to the cupcake questions. I'm more adventurous than most (IMHO), but I need to set limits. Here is an article discussing a parody of Kickstarter: http://www.theguardian.com/world/us-news-blog/2012/jun/20/kony-2012-group-lawsuit-parody  I would suggest looking up other articles that include 'fair use' 'website' 'parody' and 'lawsuit' to better understand the issues at play. You might also check with the local law schools and see if any have an IP clinic that would be able to give you advice and information on the cheap. At the end of the day, if you can't afford help, then you probably should submit to Tumblr's demands. I don't know anything about the fine, but I would ask Tumblr to identify the statute so that you can understand what they are talking about.