Released Documents Support LoopNet's Claims in Litigation Against CoStar Group, Offering Irrefutable Evidence of Unlawful Activity by CoStar (Business Wire)
Mon, 8 Jun 2009 12:30:00 Etc/GMT
More specifically, the unsealed documents reveal that CoStar management directed as many as several hundred of its employees / researchers to run tens of thousands of searches on the LoopNet website for the stated purpose of “identifying advertisers and then determining how many listings they have” and to use this information for potential “sales and marketing uses,” such as advertising. CoStar also admits that it has utilized what it terms “electronic countermeasures” to circumvent the usage limits put in place by LoopNet to guard against abusive activity.
CoStar’s use of LoopNet’s website to mine data for competitive purposes is strictly prohibited by LoopNet’s Terms of Use, which governs everyone who uses the LoopNet website. CoStar explicitly agreed to abide by LoopNet’s Terms of Use to settle a 2005 lawsuit, brought by LoopNet to stop CoStar’s systematic copying of LoopNet listings. As a condition of the 2005 Settlement Agreement, CoStar was required to introduce a written policy prohibiting its employees from violating LoopNet’s Terms of Use.
The now-public documents detailing CoStar’s systematic copying and competitive use of LoopNet customer and listing data offer irrefutable evidence of the type of unlawful activity alleged by LoopNet as the basis of LoopNet’s suit against the company.
Additionally, CoStar’s CEO, Andy Florance, now claims, in a statement given under penalty of perjury, that if LoopNet were to thwart CoStar’s systematic copying by enforcing usage limitations that apply to LoopNet’s legitimate customers, it would have “a deleterious effect on CoStar's ability to conduct research,” which CoStar, in turn, claims would cause it irreparable damage. In other words, CoStar’s own CEO now publicly admits that CoStar is not only engaging in the copying and use of LoopNet customer and listing data, but also that CoStar views its continued ability to engage in parasitic copying and use of LoopNet data as critical to CoStar’s business model.
LoopNet intends to continue to enforce its legal rights and seek all remedies available by law for CoStar’s unlawful actions and intends to continue to defend itself against CoStar’s false and misleading statements about LoopNet’s business.
Additional information about the lawsuits, including copies of the recently unsealed court documents, is available at http://www.LoopNet.com/litigation.
About LoopNet
LoopNet, Inc. is the leading online marketplace for commercial real estate and businesses for sale in the United States. The LoopNet.com online marketplace enables commercial real estate agents, working on behalf of property owners and landlords, to list properties for sale or for lease by submitting detailed property listing information in order to find a buyer or tenant. Commercial real estate brokers, agents, buyers and tenants use the LoopNet online marketplace to search for available property listings that meet their commercial real estate criteria. By connecting the sources of commercial real estate supply and demand in an efficient manner, LoopNet enables commercial real estate participants to initiate and complete transactions more cost-effectively. LoopNet also delivers technology and information services to commercial real estate organizations to manage their online listing presence and optimize property marketing.
LoopNet customers include virtually all of the top commercial real estate firms in the U.S., including CB Richard Ellis, Century 21 Commercial, Coldwell Banker Commercial, Colliers International, The CORE Network, Cushman & Wakefield, First Industrial Realty Trust, Grubb & Ellis, Jones Lang LaSalle, Lee & Associates, Lincoln Property Company, Marcus & Millichap, NAI Global, ONCOR International, ProLogis, Prudential CRES, RE/MAX, Sperry Van Ness, Staubach Retail and TCN Worldwide.
Forward-Looking Statements
This release contains forward-looking statements regarding LoopNet's expectations regarding legal actions and lawsuits currently proceeding. These statements are based on current information and expectations that are subject to change and may involve a number of risks and uncertainties. Actual events or results might differ materially from those in such forward-looking statements due to various factors, including, but not limited to LoopNet's ability to successfully defend itself from claims and support its own claims, the potential for adverse legal rulings and the potential for additional adverse legal actions. LoopNet does not currently intend to update the statements set forth herein, except as may be required by law or otherwise.
Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in our filings with the Securities and Exchange Commission (SEC). Copies of filings made by us with the SEC are available on the SEC’s web site or at http://investor.LoopNet.com/sec.cfm. LoopNet does not intend to update the forward-looking statements included in this press release that are based on information available to us as of the date of this release.
Contact:
Joele Frank, Wilkinson Brimmer Katcher Dan Katcher/Andrea Priest 212-355-4449
source: http://biz.yahoo.com/bw/090608/20090608005487.html?.v=1