In a dramatic escalation of the ongoing rivalry between real estate giants, CoStar Group has filed a federal lawsuit against Zillow, alleging systematic copyright infringement involving over 46,000 property photographs. The lawsuit, filed in federal court in New York, claims that Zillow has unlawfully used CoStar’s copyrighted images on its rental listings platform, with many still bearing CoStar watermarks. This legal battle emerges as both companies continue their fierce competition for dominance in the online real estate marketplace.
CoStar, the parent company of Homes.com and Apartments.com, alleges that Zillow’s actions constitute “willful, mass infringement” that has resulted in CoStar’s proprietary images being displayed more than 250,000 times on Zillow’s platform alone. CEO Andy Florance didn’t mince words, calling Zillow’s alleged conduct “nothing short of outrageous” and claiming the company is profiting from “decades of CoStar Group work and the billions of dollars we have invested.”
CoStar’s lawsuit details extensive allegations against Zillow, claiming that the real estate portal has engaged in “systematic infringement” of CoStar’s copyrighted photographs. Filed in federal court in New York, the complaint states that Zillow has displayed nearly 46,000 CoStar-owned images on its Zillow Rentals platform without proper authorization. The scope of the alleged infringement is significant, with CoStar claiming these images have been viewed hundreds of thousands of times across multiple platforms.
According to court documents, many of the allegedly stolen images still clearly display CoStar’s watermark, suggesting deliberate misappropriation rather than accidental use. CoStar CEO Andy Florance has taken a strong stance, stating that “Zillow is profiting from decades of CoStar Group work and the billions of dollars we have invested.” The timing of this lawsuit is particularly notable as it comes amid an intensifying battle between the two companies for market share in the competitive real estate listings space.
The lawsuit provides specific details about the nature of the alleged copyright violations, including examples with side-by-side comparisons showing CoStar-copyrighted photos appearing on both Apartments.com and Zillow Rentals. CoStar claims that in many instances, Zillow cropped the images to remove CoStar’s logo before displaying them on their platform. The complaint includes over 300 pages of examples documenting the alleged infringement, presenting what CoStar describes as clear evidence of copyright violation.
CoStar’s legal team has meticulously documented how these images allegedly made their way beyond Zillow’s platform through syndication agreements with other major real estate websites. The complaint states that through these partnerships, Zillow has become the exclusive rental listings provider for several platforms, including Realtor.com for multifamily listings with 25-plus units, as well as Redfin, Rent.com, and ApartmentGuide.com. CoStar claims this has effectively amplified the copyright infringement by distributing these images to multiple platforms, threatening to take legal action against these other sites if they don’t immediately remove the images.
CoStar is seeking substantial financial damages from Zillow, though the exact amount remains unspecified in the complaint. The lawsuit states that the harm caused is “irreparable and incalculable,” suggesting the company will pursue maximum penalties available under copyright law. Industry analysts estimate potential damages could reach into the hundreds of millions, particularly if CoStar can prove willful infringement, which carries enhanced statutory damages of up to $150,000 per work.
The timing of this lawsuit appears strategically significant, coming as CoStar’s Homes.com platform is actively challenging Zillow’s long-held dominance in the online real estate market. This legal action could potentially disrupt Zillow’s rental business model, which relies heavily on property images to attract users and advertisers. CoStar claims Zillow uses these allegedly stolen images to build webpages for properties not actively listed, then invites property owners to claim these listings and potentially purchase advertising packages ranging from “basic” to “signature” level plans.
This lawsuit is not the first time these real estate giants have clashed over copyright issues. In 2017, VHT Studios, now owned by CoStar’s subsidiary Matterport, successfully sued Zillow for copyright infringement related to real estate photography. That case resulted in Zillow being ordered to pay $1.9 million in damages plus interest after a jury found the company liable for unauthorized use of property images.
CoStar itself has a track record of aggressively protecting its intellectual property through litigation. The company previously won a $500 million judgment against commercial real estate platform Xceligent in 2019 in a similar copyright infringement case. CoStar is also currently pursuing a lawsuit against Crexi, another real estate platform, with the federal judge in that case noting CoStar has provided “ample evidence” supporting its infringement claims. These precedents suggest CoStar is well-versed in litigating copyright matters and has developed a successful playbook for these types of cases.
The outcome of this case could have far-reaching implications for how real estate data and images are shared across the industry. If CoStar prevails, it may establish stronger protections for proprietary listing content and potentially reshape how rental listing information flows between competing platforms. Other real estate portals that rely on image-sharing agreements may need to implement more rigorous verification processes to ensure they aren’t inadvertently displaying copyrighted material.
For brokers, agents, and property managers, this case highlights the increasing importance of understanding image licensing rights in real estate marketing. As the industry continues to evolve, questions about who owns listing data and how it can be used are becoming increasingly complex and contentious. The dispute underscores the significant value of proprietary real estate content in today’s market, where high-quality images are essential for attracting potential buyers and renters to online listings.
