CoStar Files $1B Copyright Suit Against Zillow as Stock Ranks 360th in Trading Volume

Generated by AI AgentAinvest Market Brief
Wednesday, Jul 30, 2025 7:30 pm ET1min read
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Aime RobotAime Summary

- CoStar sues Zillow for $1B over unauthorized use of 46,979 real estate photos.

- The lawsuit mirrors a 2019 $500M win and targets platforms like Realtor.com.

- CoStar’s stock ranked 360th in trading volume amid the legal battle.

- A top-500 trading strategy outperformed benchmarks by 137.53% from 2022.

On July 30, 2025, CoStar GroupCSGP-- (CSGP.O) rose 0.69% with a trading volume of $0.34 billion, ranking 360th in market activity. The stock’s movement coincided with a high-profile legal dispute involving the real estate data provider. CoStarCSGP-- filed a lawsuit against Zillow Group (ZG.O), alleging the use of over 46,979 of its copyrighted real estate photographs without authorization. The complaint seeks unspecified compensatory and punitive damages, which CoStar estimates could exceed $1 billion. The suit claims Zillow leverages these images—including many watermarked—to enhance its rental listings business, potentially generating revenue through advertising and property management tools.

The case highlights CoStar’s aggressive defense of its intellectual property, a strategy that has previously yielded significant financial results. In 2019, the company secured a $500 million judgment against Xceligent over similar copyright violations. This time, the lawsuit also implicates third-party platforms like Realtor.com and Redfin, which Zillow is alleged to have syndicated the images to. CoStar’s CEO has warned of further legal action if those platforms fail to remove the content. The litigation underscores the competitive dynamics in the real estate tech sector, where data ownership and monetization are critical battlegrounds.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. With a compound annual growth rate of 31.89% and a Sharpe ratio of 1.14, the approach demonstrated strong risk-adjusted performance, marked by a maximum drawdown of 0.00%. This suggests the strategy effectively capitalized on market momentum while minimizing downside exposure over the period.

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