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CoStar Vs Zillow Lawsuit Puts Copyright Protection at the Center of PropTech

Wednesday, October 1, 2025

On Tap Today

  • Law and order: CoStar has been accused of weaponizing copyright law, but its recent legal battles suggest it may be justified in protecting its digital assets.

  • Bets are in: After some of NYC’s casino proposals have been scrapped, there are now four finalists for the city’s next gambling license.

  • Cleaning house: HUD has removed whistleblowers as it continues to pivot away from enforcing civil rights laws and becomes increasingly political.

  • Multifamily webinar: Centralization is helping apartment owners cut costs, reduce risks, and improve resident experiences. Sign up

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Data & Analytics

The commercial real estate industry has long viewed CoStar as a company quick to take rivals to court. Competitors joke that lawyers are its biggest product division, but the reality is more complex. CoStar has spent millions building a massive photo library of buildings and listings, and its aggressive litigation may be less about intimidation and more about protecting what it sees as its most valuable asset.

Now the fight has reached Zillow. CoStar accuses the residential giant of displaying tens of thousands of its copyrighted photos, even after being notified. Zillow insists it’s just a platform, but if courts decide it profited from unauthorized use, the outcome could test the limits of digital copyright protection in real estate.

The clash echoes CoStar’s earlier battles with firms like Xceligent and CREXi, where lawsuits reshaped the competitive landscape. This time, the stakes are bigger. Beyond Zillow’s exposure, the case could set new rules for how listing photos are shared, licensed, and monetized—potentially changing the way property data flows through the entire industry.

Overheard

The Department of Housing and Urban Development has reportedly moved to remove two civil rights attorneys who were part of a whistleblower disclosure alleging that the agency is scaling back enforcement of fair housing laws. The timing and context raise eyebrows: these are not just personnel changes, they’re being viewed by insiders as a signal that the agency’s legal and enforcement wings are being reshaped under political direction.

This action feeds a broader narrative that HUD is becoming more overtly politicized under this administration. Earlier whistleblower reports accused HUD leadership of deemphasizing civil rights enforcement, slashing staff in its fair housing offices, and imposing internal restrictions on attorneys. (See also coverage of dismantling fair housing activity across HUD’s enforcement branches.) The removal of lawyers directly tied to these critiques suggests a consolidation of control and a clampdown on internal dissent.

The agency’s enforcement posture has ripple effects: landlords, developers, lenders, and housing advocates monitor HUD not just for subsidy programs, but for how rigorously its civil rights laws are upheld. If the perception takes hold that HUD will shy away from enforcement or suppress internal critics, it could embolden regulatory noncompliance, alter underwriting risk assessments, and shift how housing policy intersects with real estate investment.

New York’s high-stakes casino licensing process has narrowed considerably, with the competition entering its decisive phase. Two frontrunners — MGM Empire City in Yonkers and Resorts World Aqueduct in Queens — are widely expected to secure licenses thanks to their existing racetrack operations and established infrastructure. That leaves the spotlight on two projects vying for the final license: Steve Cohen’s $8 billion Metropolitan Park next to Citi Field, and Bally’s $4 billion proposal for Throggs Neck in the Bronx.

Cohen’s plan cleared a major hurdle when the community advisory committee for his project voted unanimously to advance it, despite opposition from local Senator Jessica Ramos. Metropolitan Park would transform 50 acres of Citi Field parking lots into a casino, Hard Rock hotel, live entertainment venue, and expansive public green space. The developers also pledged to fund the Flushing Skypark and affordable housing nearby, bolstering their community appeal. Still, the path was complicated by the need for park alienation legislation — a process that nearly derailed the project before State Senator John Liu revived it in Albany.

Meanwhile, Bally’s pulled off its own surprise win in the Bronx, earning approval from its advisory committee even after the City Council voted against necessary zoning changes. Supporters framed the project as a rare chance for the borough to gain a large-scale economic engine, but questions remain about financing and community backing. Bally’s has promised community benefit funds, union jobs, and equity opportunities for local residents, but critics worry about the company’s financial stability and its ability to deliver on promises amid heavy debt and ongoing challenges elsewhere.

With the rejection of the Coney Island proposal and the elimination of three Manhattan bids earlier this year, the field is set. By year’s end, the state’s Gaming Facility Location Board is expected to grant up to three licenses. If expectations hold, MGM and Resorts World will claim two, leaving Cohen’s massive Queens development and Bally’s Bronx casino in a head-to-head battle for the last slot. The decision will likely hinge on scale, projected tax revenue, and job creation — metrics where Cohen’s Metropolitan Park appears to have the edge.

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