CoStar sues Zillow for alleged copyright infringement of thousands of photos

NEW YORK - CoStar Group, Inc. (NASDAQ:CSGP), a prominent player in the Real Estate Management & Development industry with a market capitalization of $40.5 billion, filed a lawsuit in New York federal court on Wednesday against Zillow, alleging widespread copyright infringement of over 46,000 of CoStar’s photographs. According to InvestingPro data, the company maintains strong financial health with a current ratio of 5.83, indicating robust operational stability.

According to the complaint, Zillow has published CoStar’s watermarked images more than 250,000 times on Zillow.com. The lawsuit further claims that Zillow has extended this alleged infringement to partner sites Redfin and Realtor.com through recent partnerships where Zillow serves as the sole provider of multifamily listings.

CoStar, which specializes in commercial real estate information and analytics, states in the lawsuit that it has invested billions of dollars in building its real estate database, including what it describes as "the world’s largest library of real estate photographs." The company reports that it copyrights over two million original real estate photos annually.

"Zillow’s theft of tens of thousands of CoStar Group’s copyrighted photographs is nothing short of outrageous," said Andy Florance, CoStar’s Founder and CEO, in a press release statement.

The lawsuit notes that Zillow has previously faced similar legal challenges, referencing a case where Zillow was found liable for copyright infringement claims brought by real estate photography studio VHT, Inc., resulting in a multi-million dollar payment.

CoStar indicated it might pursue legal action against Redfin and Realtor.com if the allegedly infringing images are not removed from their platforms.

The case potentially represents one of the largest image infringement cases in history, with CoStar suggesting Zillow could face liability for more than a billion dollars in damages.

Based on a press release statement from CoStar Group, this lawsuit marks a significant legal confrontation between two major players in the digital real estate marketplace.

In other recent news, CoStar Group’s second-quarter results have garnered attention for surpassing expectations in revenue and earnings. The company reported record net new bookings, showing a 65% increase quarter-over-quarter, with core EBITDA margins reaching 43%. Following these results, CoStar Group raised its full-year guidance for both revenue and EBITDA margins. Analysts have responded positively, with Needham raising its price target to $105 and maintaining a Buy rating, citing strong Q2 results. Similarly, Citi increased its price target to $100, highlighting a 55% year-over-year rise in commercial real estate bookings as a key factor. BMO Capital also adjusted its price target upward to $89, noting solid revenue growth, although partly attributed to expense timing. Additionally, CoStar Group appointed Grant Montgomery as National Director of Multifamily Analytics, bringing over 25 years of experience to the role. This series of developments underscores the company’s robust performance and strategic moves in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.