CoStar sues Zillow over alleged theft of thousands of copyrighted photos

In a significant legal battle in the United States, CoStar Group, which owns Homes.com and Apartments.com, has initiated a lawsuit against Zillow, prominently known for its online real estate marketplace. This lawsuit was filed in the Southern District of New York, where CoStar claims that Zillow engaged in systematic copyright infringement by using approximately 47,000 of its copyrighted photographs without authorization. The illegitimate use of these images allegedly helped Zillow enhance its online rental listings, effectively profiting from CoStar's substantial investment in building a vast collection of real estate photos. CoStar asserts that it invested billions into developing its extensive database, hiring thousands of professional photographers to create what they describe as the world's largest library of real estate images. Many of the photographs in question bear CoStar's watermark, indicating their origins, and according to the lawsuit, they have been displayed over 250,000 times across different listings on Zillow’s websites. Moreover, the lawsuit points out that Zillow's misconduct extends beyond its own platforms; through syndication agreements, the company is accused of distributing CoStar’s copyrighted images to other listing websites, including competitors like Realtor.com and Redfin. This allegation raises serious concerns about how widely CoStar's images have been used by Zillow. The legal action taken by CoStar fits into a broader narrative of challenges that Zillow is currently facing; it marks the second lawsuit filed against the company in just five weeks, following another complaint from real estate brokerage Compass, which is seeking an injunction to alter Zillow's listing practices. Consequently, these legal troubles intensify scrutiny on Zillow's operations and raise questions about its compliance with copyright laws. As the lawsuit unfolds, it may further affect Zillow's business model and relationships within the real estate marketing ecosystem. In response to these serious allegations, Zillow has been contacted for comments but has not publicly responded to CoStar's claims. The outcome of this legal battle could have significant implications for both companies in terms of their operational practices and their standing within the real estate market. As the case progresses, the real estate industry will be closely monitoring the developments, as the results could reshape how real estate images are utilized online and impact the rights of photographers and businesses in the sector.