Technically, Gap copied his image almost exactly. That is copyright infringement.
Since this was placed on Flickr, there are different ways to protect images. For instance, on some parts the image is completely free for use by anyone. On other parts, the image is partially copyright using Creative Commons or even fully copyright.
Gap did cross the line by using his image without asking permission for it.
I think that I would probably be more upset if I was the Jaguar designer.
Yes, that was a portion of the discussion of the issue - but the case could be made that it was free advertising for Jaguar. The person really hurt, here, was the photographer. The firm that actually took the image was based in india and difficult to prosecute internationally. However, they were a Gap supplier, so Gap was not completely off the hook. Ultimately, an undisclosed settlement was reached with Gap claiming it was a good will gesture and not an admission of guilt.
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