Zillow has fired back at CoStar in the ongoing copyright lawsuit over listing photos. On September 29, if filed a letter criticizing CoStar’s legal tactics and asking the court to move the case to Washington state.
Just a day later, on September 30, CoStar issued an update on the lawsuit, accusing Zillow of “doubling down” on stolen photos.
Here’s what we know so far.
Zillow Calls CoStar’s Suit a “Weapon”
Zillow’s letter painted CoStar’s lawsuit as part of a broader pattern of aggressive litigation:
“This case is CoStar’s latest attempt to weaponize copyright litigation for competitive pressure, consistent with its history of filing suits against industry rivals,”the letter states.
“This lawsuit is nothing more than a calculated attempt to misuse copyright law to sideline Zillow and lock in CoStar’s control.”
The letter also argues that the CoStar-watermarked photos at the center of the dispute were lawfully provided to Zillow by its customers. The company claims it follows the Digital Millennium Copyright Act (DMCA), giving copyright holders a process to request photo takedowns, which is something CoStar bypassed by filing suit directly.
“These photos are provided by Zillow’s customers, who grant Zillow a license to the photos and warrant that they have all rights to do so.
“Further, Zillow has an established policy allowing copyright owners to request takedown of materials in which they claim a copyright, consistent with the DMCA. Rather than use this system, CoStar chose to shift the burden to the courts and file the instant suit without prior notice to Zillow.”
Zillow’s Request: Move the Case to Washington
Zillow requested that the lawsuit be transferred from the Southern District of New York to the Western District of Washington, where Zillow is headquartered. The company argued that New York has little to do with the case, while most witnesses, employees, and data involved are based in Seattle.
Zillow’s attorneys also pointed to the company’s Terms of Use, which they say require disputes connected to its websites to be litigated in Washington courts.
According to Zillow, CoStar filed the case in New York to avoid unfavorable Ninth Circuit precedent, which has handled numerous copyright disputes.
CoStar’s Move
On September 30, CoStar distributed a press release claiming Zillow is still using nearly 8,000 disputed images and has added thousands more since the lawsuit was filed in July.
CoStar’s CEO Andy Florance didn’t hold back:
“Despite being caught red-handed blatantly stealing our copyrighted work, Zillow has doubled down to exploit thousands of additional copyrighted images without any shame.”
The company’s general counsel added that Zillow’s continued use of watermarked images shows deliberate infringement.
Catch up on BAM’s earlier coverage: CoStar Calls Out Zillow for ‘Doubling Down’ on Stolen Photos
What’s Next
The court now has to decide whether to:
- Transfer the case to Washington, as Zillow requests, or
- Keep it in New York, where CoStar filed.
Zillow also noted that “CoStar has not adequately pleaded its claims and Zillow will seek a pre-motion conference on a motion to dismiss.”
Meanwhile, CoStar is seeking permanent injunctive relief and more than $1 billion in damages, while also threatening legal action against Redfin and Realtor.com if infringing images aren’t removed.
See Zillow’s full letter below:
Stay tuned for more updates as the story develops.
