Intellectual Property Law
Intellectual Property Law Questions? Ask a Lawyer
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The photographs are your friend's intellectual property (copyright), even if they are not registered with the US Copyright office. You could also register the copyright online: . http://www.copyright.gov/eco/notice.html
(*your friend can, that is)
Assuming that there is nothing in writing that gives his neighbor any rights to ownership or use of the images, artwork, literary elements, etc... then the neighbor can't do anything about it.
The neighbor doesn't have a license based merely on a handshake. And if the neighbor uses these, your friend can sue, get an injunction, etc...
It's better if your friend registers the copyright with the US copyright office, because your friend could sue for past damages, statutory damages, and attorneys fees and costs (which cannot be sued for if it's a common law (not registered) copyright).
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what is the fee for registering wi th the U.S. Copyright office?