So she gave you verbal permission to copy the photo, and now she's changed her mind and thinks she can sue you? Well, um, permission is permission and doesn't need to be in writing, although it does help avoid disagreements. However continuing down that road will only enrich lawyers, since it's her word vs.your own, and at the end of it all, what damages does she think she can claim from you? What is the real, provable extent of her commercial loss? That is what any UK court will want to know. Courts don't like to be used to pursue personal feuds.

I'd suggest you do the gentlemanly thing : remind her (in writing) of her previous consent to use her work, remove your derivative artwork from Deviantart, tell that this is not because of her silly threats but because you have no wish to embarass her, and get on with your life. Re-make the artwork with a nicer girl who has a better attitude. It's going to be far less trouble.

[nb: as a copyright question this would have been better posted at our sister site http://copyrightaction.com - but don't worry about it.]

Photorights admin