Zillow Accuses CoStar of "Weaponized Litigation" in Lawsuit Response

Zillow has alleged that CoStar Group is attempting 'to weaponize copyright litigation for competitive pressure' in its first public statement since CoStar filed a lawsuit for copyright infringement in July.

Zillow is accused of using nearly 50,000 CoStar-branded images on its portal, but defended itself in yesterday's comments, while also pointing the finger at CoStar for what it described as overly aggressive litigation.

The company criticised CoStar for not using the Digital Millennium Copyright Act (DMCA) takedown process before suing, calling the Southern District of New York filing improper.

Jamie A. Levitt, attorney for Zillow, said, "This lawsuit is nothing more than a calculated attempt to misuse copyright law to sideline Zillow and lock in CoStar’s control."

Zillow also defended its position, saying it is not responsible for photos published on its portal by private individuals:

CoStar alleges that a subset of rental listings on Zillow and affiliate sites contain its copyrighted photos. Those 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. CoStar has not adequately pleaded its claims and Zillow will seek a pre-motion conference on a motion to dismiss.

Zillow's letter to the courts seeks a dismissal of the case and also calls for a change of venue, citing a lack of geographical precedence to file the lawsuit in New York.

Yesterday, CoStar doubled down on Zillow in an update on the lawsuit, accusing the portal of additional copyright infringement for nearly 7,000 extra images. Andy Florance called Zillow 'red handed', while general counsel Gene Boxer said Zillow is "building its rental business on stolen photos."

Meanwhile, and in an almost unbelievable ramping up of legal pressure, Zillow was named as a defendant in yet another lawsuit yesterday, when the Federal Trade Commission alleged a listings syndication agreement with Zillow's rentals partner, Redfin, is anticompetitive and illegal.