CoStar accuses Zillow of continued copyright infringement despite lawsuit

ARLINGTON - CoStar Group, Inc. (NASDAQ:CSGP), a prominent player in the Real Estate Management & Development industry with a market capitalization of $35.7 billion, reported Tuesday that Zillow Group continues to display thousands of allegedly copyrighted and watermarked CoStar photographs despite a lawsuit filed against Zillow in July.

According to CoStar’s press release statement, Zillow has displayed at least 4,618 additional CoStar-owned images since the initial lawsuit, which claimed infringement of nearly 47,000 images. CoStar also alleges that Zillow continues to display almost 8,000 of the specific images identified in the original complaint. The company, which has seen its stock rise 17.7% year-to-date, maintains a strong financial position with more cash than debt on its balance sheet.

The real estate data company further claims that Zillow distributes these images to other platforms including Redfin, Realtor.com, and Zillow affiliate websites such as Trulia, HotPads, and StreetEasy through syndication agreements.

"Despite being caught red-handed blatantly stealing our copyrighted work, Zillow has double downed to exploit thousands of additional copyrighted images without any shame," said Andy Florance, CoStar’s Founder and CEO, in the press release.

Gene Boxer, CoStar’s General Counsel, added that "Zillow is building its rental business on stolen photos" and that "rather than learn its lesson, it doubled down, and the infringement scheme got even larger."

The company stated it will pursue permanent injunctive relief and substantial damages through its lawsuit.

CoStar Group describes itself as a global provider of online real estate marketplaces, information, analytics, and 3D digital twin technology. The company’s major brands include CoStar, LoopNet, Apartments.com, Homes.com, and several other real estate platforms. According to InvestingPro, the company maintains healthy liquidity with a current ratio of 5.83 and is expected to see continued sales growth this year. For deeper insights into CoStar’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 top US stocks.

Zillow has not issued a public response to these latest allegations as of the time of reporting.

In other recent news, CoStar Group reported a 15% year-over-year increase in revenue for the second quarter of 2025, totaling $781 million. The company also achieved record net new bookings of $93 million, marking a 65% sequential rise. CoStar Group has completed its acquisition of Domain Holdings Australia Limited, significantly expanding its presence in the Australian property market. Domain, one of Australia’s leading property marketplaces, reaches approximately 7 million Australians monthly.

Goldman Sachs has maintained its Buy rating on CoStar Group, setting a price target of $105.00, due to strong traffic growth on its residential platform, Homes.com. The firm noted that monthly unique visitors to Homes.com grew by 3% year-over-year in July and 9% in August. Wolfe Research initiated coverage on CoStar Group with an Outperform rating and a price target of $105.00, citing potential investment returns from Homes.com and continued strength in Apartments.com. CoStar Group sees the residential market as an attractive opportunity, estimating a total addressable market of $3 billion with potential EBITDA of $1.5 billion.

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