David vs Goliath: Crexi & CoStar Are Going to the Surpeme Court Over Copyright Infringement & AntiTrust Issues
In the world of Commercial Real Estate (CRE), two giants—CoStar and Crexi—are locked in a legal battle that feels less like a corporate disagreement and more like a high-stakes heavyweight boxing match.
While it might seem like just “lawyers doing lawyer things,” the outcome could fundamentally change how you list properties, who owns your data, and how much you pay for the privilege.
Before we get into this, I should say that these observations are my own and do not neccesarily reflect those of my broker EXP Commercial.
The Core Conflict: Photos vs. Fair Play
At its simplest, this case is a “he-said, she-said” regarding two different areas of law: Copyright and Antitrust.
1. CoStar’s Argument: “You’re Stealing Our Stuff”
CoStar (the established king of the industry) claims that Crexi (the fast-growing challenger) has been “industrial-scale” stealing. Specifically, CoStar alleges that Crexi used offshore teams to:
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Scrape images from CoStar’s site (LoopNet).
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Crop out the CoStar watermarks.
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Upload those photos to Crexi to make their own database look better.
In 2025, a federal judge agreed that the evidence of “copy and crop” was overwhelming, finding that Crexi had a deliberate policy to do this.
2. Crexi’s Argument: “You’re a Bully”
Crexi hit back with a countersuit. They argue that CoStar is a monopoly—a company so big it uses its power to crush competition. Crexi claims CoStar:
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Forces brokers into “de facto” exclusive deals.
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Uses technical barriers to prevent brokers from moving their own data to other sites.
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Hikes prices by 300–500% once they buy out a competitor.
In late 2025 and early 2026, appellate courts gave Crexi a win, allowing these antitrust claims to move forward despite CoStar’s attempts to dismiss them.
3. The “Invisible Fence”: De Facto Exclusive Dealing
While CoStar’s contracts might not say, “You are forbidden from using Crexi,” the courts are looking at “de facto” (in practice) exclusivity. Crexi alleges that CoStar creates a system where it is practically impossible or financially ruinous to use anyone else.
| Practice | How it Works | The Impact on You |
| The “Moat” (LoopLink) | CoStar provides “LoopLink,” a tool that powers the listings page on a broker’s own website. | Crexi alleges this tool contains hidden code that blocks competitors from seeing or “indexing” your listings, even though they are on your site. |
| Bundling & Lock-in | CoStar often bundles services (e.g., you can’t get the data you need without buying the expensive marketing package). | It makes the “cost of switching” too high. To try a competitor, you’d have to pay twice for the same service. |
| Restrictive Licensing | Terms that may restrict how you export your own data or photos to other platforms. | You might find yourself having to recreate your entire database from scratch just to list a property on a second site. |
What This Means for You
For Commercial Real Estate Brokers
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The “Ownership” Trap: Many brokers are shocked to learn that once they upload a photo to CoStar, CoStar often claims copyright ownership of it. This lawsuit may clarify whether you actually own the marketing materials you paid for.
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Software Freedom: If Crexi wins, it might become much easier for you to “multi-list” properties without CoStar’s software blocking you or their contracts punishing you.
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Pricing: Competition usually lowers prices. If CoStar’s dominance is limited, you might see more affordable subscription options.
For Real Estate Investors
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Data Accuracy: If the courts find that data is being “scraped” and modified, it raises questions about the integrity of the listings you’re seeing.
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Market Transparency: A more competitive market means more platforms fighting to give you the best data. If CoStar wins and shuts down challengers, the “gatekeeper” effect becomes even stronger, meaning you pay whatever they ask for the data you need to make deals.
The Verdict: Whose Case is Stronger?
Currently, CoStar has the stronger case on Copyright, while Crexi has the momentum on Antitrust.
CoStar has “smoking gun” evidence (internal emails and instructions) showing Crexi employees intentionally removing watermarks. It is very hard to win a copyright case when you’ve been caught “cropping and swapping.”
However, Crexi’s argument that CoStar is a monopoly resonates with a CRE industry that has grown tired of CoStar’s aggressive pricing and litigation-heavy business model. The fact that the Ninth Circuit revived Crexi’s claims suggests the courts are ready to look seriously at whether CoStar is “bullying” the market.
Here’s what happens if CoStar wins:
If CoStar wins, they will likely receive a massive payout (potentially millions in damages) and could even get an injunction that severely limits Crexi’s ability to operate. This would solidify CoStar’s “moat,” likely leading to continued high subscription costs and stricter control over how property data is shared across the internet.
Here’s what happens if Crexi wins:
If Crexi’s antitrust claims succeed, CoStar could be forced to change its business practices. This might mean “opening up” their data silos, removing restrictive clauses from broker contracts, and making it easier for new tech companies to enter the space. For the average broker, it would mean more choices, lower fees, and more control over their own listings.
PDF: Petition for the Supreme Court – CoStar vs Crexi
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