CoStar Sues Zillow For Copyright Infringement But Are There Other Factors At Play?
Is The Owner of Apartments.com & Homes.com Really Suing Zillow?
You may have seen recent headlines that CoStar Group, the powerhouse behind Homes.com, Apartments.com, and LoopNet, has launched a calculated move to disrupt the online real estate space. They've acquired two critical players in real estate media - Matterport and VHT Studios - and now they've filed a lawsuit against Zillow for displaying copyrighted images and content originally created by those companies, threatening to go after Redfin and Realtor.com as well.
At first glance, it may seem like a standard copyright claim. But we're here to tell you this is much bigger than that. This is an aggressive and strategic play to shift the balance of power in online real estate and win the SEO war - a war that determines which listing platforms consumers find first, and which platforms dominate the online search experience. While Homes.com and CoStar have already been gaining traction through their high-cost traditional marketing efforts, they have finally made a play against Zillow from the digital marketing realm - a space that Zillow has dominated and enjoyed 'the throne' with for a decade.
What CoStar Is Really Doing: An SEO Power Play
Let's be clear. This isn't just about protecting intellectual property. It's about visibility, search traffic, and Google dominance. By removing rich content (photo and video content) from Zillow and other competitors, CoStar is trying to starve those platforms of the very media that drives listing engagement and organic ranking.
Here's how this works:
Original media content (photos, floorplans, 3D tours) is crucial to on-page SEO. Media content is a variable that most SEO experts suggest plays a role in the algorithm, but on top of that, core web vital stats are hurt by listings without images. For example, on-page time is a key factor in how search algorithms determine what links to show, as it suggests the content is relevant. When a consumer clicks on a listing and doesn't see any photos or videos, they are far more likely to leave the page quickly.
When CoStar owns that content via their Matterport and VHT acquisitions, they can legally demand removal from competitors.
That removal weakens other platforms' listings - less content means lower content quality scores in Google's eyes.
Meanwhile, Homes.com listings retain all the rich visuals, giving them an upper hand in rankings. The content also becomes more unique to them, helping to establish that Homes.com will have higher search results on the listings and properties that only Homes.com has photos and videos for.
This maneuver aims to push Homes.com to the top of Google search results for homebuyers and renters, effectively outmaneuvering Zillow and others using the very infrastructure of the internet.
The Hidden Truth About Content Ownership
Many agents are shocked to learn that they don't actually own the listing media they paid for. If you hired Matterport or VHT, or worked with a brokerage that did, you likely licensed the media, rather than owning it outright. CoStar, by acquiring these companies, now controls that media and is asserting those rights.
What's more alarming is that this isn't limited to Matterport and VHT. Many local MLSs, especially those affiliated with the NAR, have similar policies where they claim ownership of listing data and media the moment it's uploaded.
These assets can then be repurposed, syndicated, or even sold, often without the agent's permission or benefit.
We believe your data is just that... yours. We do not claim ownership of your listings, media, or marketing materials. We will distribute your data, not control it.
Understanding the SEO Lesson: Why Content and Ownership Matter
Search engines like Google reward websites that offer unique, high-quality, and engaging content. In real estate, this translates to:
- Exclusive listing media (photos, videos, 3D tours)
- Descriptive, keyword-rich copy
- Fast-loading, structured pages
- Time-on-page and click-through rate
By consolidating media ownership and stripping competitors of content, CoStar is attempting to:
- Control who has access to the best SEO-performing assets
- Push competitors lower in search rankings
- Make Homes.com the go-to site for property searches
Control over your content is now a strategic business decision, not just a matter of convenience.
What Can You Do About It?
In light of these changes, agents and brokers must take proactive steps to protect their business and control their content. The most immediate and impactful action you can take is this:
Before you schedule a shoot, ask the photographer directly:
- "Do I own the photos once I pay you?"
- "Can I use them on any platform I choose, without restriction?"
- "Will I receive a written release or license for full rights?"
If the answer is no, insist that the answer be yes or walk away. There are many talented professionals who will grant you full rights to the content you paid for. And remember: you're the customer. Be persistent. Most photographers will be willing to negotiate if it means keeping your business. After all, negotiation is part of your job.
By making this your standard practice, you ensure that no third party - whether a media company, portal, or MLS - can strip you of the assets that fuel your brand, your SEO, and your success.
MyState MLS
If you're worried about how this landscape affects your business, you should be. But you also need to know that you have options, and MyState MLS is leading the charge.
We've always been different:
- We are not affiliated with the NAR.
- We do not require NAR membership.
- We do not dictate how you do business.
- We allow full flexibility in listing practices, including cooperative compensation fields - but we never require them.
- We never copyright, sell, or distribute your data without you directing that action.
- We provide solutions to allow you to receive the same SEO benefits that Homes.com seeks to gain in their lawsuit.
A Better Way Forward
CoStar's move is bold. It's smart. And it's likely to reshape the online real estate game.
But here's the good news: you don't have to play by their rules... or anyone else's... if you don't want to. We still have many tiers of compliance to keep our db clean and ensure license law isn't broken, BUT, outside of the bounds of license law - it's your business, you should run it how you choose.
As the industry evolves, it's clear that the platforms and services that empower agents, not restrict them, will thrive.
We're proud to be on the right side of that future.
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