CoStar Sues Zillow for "Rampant" Copyright Infringement

CoStar Group has sensationally sued Zillow for "brazen" copyright infringements in a lawsuit that the Group claims has the potential to be one of the biggest image infringement cases in history.

CoStar has sued Zillow for allegedly unlawfully repurposing more than 46,000 CoStar Group images—including more than 250,000 times on Zillow alone—as well as publishing the same images on syndication partners Redfin and Realtor.com.

A strongly worded press release suggests Zillow could be exposed to more than $1 billion in damages for its misuse of copyrighted images. The legal action was initiated in the New York federal court, alleging that Zillow published tens of thousands of images without authorisation.

"There is no question that Zillow’s misconduct is deliberate," states CoStar's press release. "Zillow has engaged in rampant copyright infringement. [It] could hardly be more brazen."

CoStar attached evidence that Zillow had cropped CoStar's logo out of images before repurposing them on other portals. CoStar also attached a 1800-page document detailing every image subject to copyright infringement between May and July 2025.

CoStar claims Zillow is using the images to rapidly expand its rental listings, attract new customers, generate revenue from advertising properties with stolen images, and boost the stock of its partners, Realtor.com and Redfin.

Andy Florance, Founder and CEO of CoStar Group, said:

"Zillow’s theft of tens of thousands of CoStar Group’s copyrighted photographs is nothing short of outrageous. Zillow is profiting from decades of CoStar Group work and the billions of dollars we have invested. Even worse, Zillow is magnifying its infringement on Redfin and Realtor.com. If these other sites do not immediately remove our images, we will have no choice but to sue them as well. We are committed to stopping this systematic infringement and holding the wrongdoers to account."

CoStar branded Zillow a "repeat offender" in its briefing, highlighting previous findings of copyright infringement against Zillow, including a jury verdict in favour of VHT, Inc., a real estate photography studio, for millions of dollars in damages. The case closed in 2022 with Zillow paying $1.9 million in damages.

While not named as co-defendants in the lawsuit, Redfin and Realtor.com also face the risk of having the same charges levied at them if they do not remove the images from their own websites.

CoStar is a business led by one of the most confident legal teams in the world. Andy Florance said so himself, telling Online Marketplaces in 2024:

"I enjoy competing [and] I prefer to win, not lose. There’s no sports team with a better track record than our legal track record. We know what we’re getting into, we know what we’re doing, and we overwhelmingly prevail in the things we go into. I am a fierce protector of our shareholders’ interests. So I do not sit quietly by when someone comes to try and steal my shareholders’ equity. You’ll find that I can be quite assertive."

The wording, length and breadth of CoStar's communications around this lawsuit suggest the Group is confident it has a watertight case against Zillow, while appearing quite unimpressed with Zillow's methods.

Meanwhile, the lawsuit will be an unwelcome distraction for Zillow. The portal giant will now fight a legal war on two fronts as it defends itself against the brokerage Compass, which launched legal proceedings against Zillow in June, alleging that Zillow's controversial listings ban is an abuse of its monopoly. Zillow has already defended itself against these claims, stating its updated listings standards policy does not pose antitrust risks in a 40-page counterclaim.

CoStar Group’s portfolio includes CoStar, LoopNet, Apartments.com and Homes.com. In the second quarter of 2025, the company reported a 15% increase in revenues year-on-year, the Group's 57th consecutive quarter of double-digit revenue growth.