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CoStar Group has filed a lawsuit against Zillow, accusing the real estate platform of unauthorized use of nearly 47,000 copyrighted property images to bolster its rental listings business. These images, many of which carried watermarks, were reportedly published on Zillow's platform and syndicated to sites like Realtor.com and Redfin. CoStar is seeking over USD 1 billion in compensatory and punitive damages, alleging the infringement was both extensive and intentional. The company also warned it may take similar legal action against Zillow's syndication partners unless the disputed content is promptly removed.
Zillow has been taken to court by CoStar Group, which has accused the platform of extensive copyright violations concerning tens of thousands of property photographs. Filed in a New York federal court last week, the lawsuit alleges that Zillow used around 46,979 copyrighted images without permission, publishing them on its own platform and distributing them to partner websites including Realtor.com and Redfin. Advertisement
According to CoStar, many of the photos featured visible CoStar watermarks, yet were still presented by Zillow as part of its rental listings. The complaint stated that Zillow leveraged these images to enhance engagement on its listings, encouraging property managers and landlords to claim listings and purchase associated advertising services. CoStar maintains that this was done without a valid sublicensing arrangement, which its licensing terms explicitly prohibit.
The estimated damages, as stated by CoStar, could exceed USD 1 billion, factoring in both actual losses and punitive measures due to the scale of the alleged misconduct. CoStar's leadership reportedly commented that Zillow's actions constituted an attempt to profit from years of photographic investment by CoStar, calling the situation "outrageous" and deliberately exploitative.
In addition to seeking financial damages, CoStar has issued warnings to other platforms sharing the disputed images, stating that they too could face legal consequences unless the content is removed immediately. The case mirrors a prior legal victory for CoStar, in which it secured a judgement worth USD 500 million against another real estate data company over similar copyright breaches.
Zillow had not issued any formal response by the time the lawsuit became public.
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