CoStar Group Files Lawsuit Against Zillow for Copyright Infringement

CoStar Group Inc. has filed a major copyright infringement lawsuit against Zillow, alleging that the real estate platform has unlawfully used tens of thousands of its watermarked photographs. The lawsuit, which could be one of the largest image infringement cases in history, highlights CoStar's commitment to protecting its intellectual property and the integrity of its brand. The case could have significant financial implications for CoStar and its competitors, and may reshape market practices regarding the use of proprietary content.

CoStar Group Inc. has filed a significant copyright infringement lawsuit against Zillow, alleging that the real estate platform has unlawfully used tens of thousands of its watermarked photographs. The lawsuit, which could be one of the largest image infringement cases in history, underscores CoStar's dedication to safeguarding its intellectual property and brand integrity.

The complaint, filed in New York federal court, accuses Zillow of publishing more than 46,000 CoStar Group images, many of which bear the distinctive CoStar watermark, on its platforms and those of its partners, Redfin and Realtor.com [1]. This infringement has been compounded by Zillow's recent partnerships with these sites, where it serves as the sole provider of multifamily listings.

CoStar Group has invested billions of dollars in building its comprehensive database of real estate information and owns millions of copyrighted real estate images. The company employs or hires thousands of professional photographers annually to create and copyright these images [2]. The lawsuit highlights Zillow's alleged lack of investment in its own website, people, and intellectual property, opting instead for rampant copyright infringement.

The legal battle between these two industry giants comes at a time when Zillow faces another feud in federal court. Compass, a real estate brokerage with 19 offices on Long Island, sued Zillow over a policy that bans listings from its platform if they are publicly marketed for more than a day but not listed on a multiple listing service [3].

The lawsuit is unlikely to directly impact consumers but could have significant financial implications for both parties. Real estate market analyst Rob Hahn views it as CoStar leveraging its substantial investment in real estate photography to force Zillow to take down certain images, potentially affecting Zillow's traffic [3].

CoStar Group previously won a major judgment in a federal copyright case against Xceligent, a now-defunct real estate listing platform. In 2019, CoStar won a $500 million judgment against Xceligent for using more than 38,000 of its copyrighted images [2].

CoStar Group's lawsuit is a stern warning to competitors and highlights the importance of respecting intellectual property rights in the real estate industry. The case could potentially reshape market practices regarding the use of proprietary content.

References:
[1] https://www.newsday.com/business/costar-zillow-long-island-it8q77ij
[2] https://www.businesswire.com/news/home/20250730776690/en/CoStar-Sues-Zillow-For-Rampant-Copyright-Infringement
[3] https://www.theglobeandmail.com/investing/markets/stocks/CSGP/pressreleases/33741371/costar-sues-zillow-for-rampant-copyright-infringement/