Costar sued Loopnet

June 21, 2004 4th Cicuit
issues significant digital-era copyright ruling: A divided three-judge panel of the Fourth Circuit issued its ruling today in CoStar Group, Inc. v. LoopNet, Inc. The majority opinion begins:

CoStar Group, Inc. and CoStar Realty Information, Inc. (collectively "CoStar"), a copyright owner of numerous photographs of commercial real estate, commenced this copyright infringement action against LoopNet, Inc., an Internet service provider, for direct infringement under secs. 501 and 106 of the Copyright Act because CoStar's copyrighted photographs were posted by LoopNet's subscribers on LoopNet's website. CoStar contended that the photographs were copied into LoopNet's computer system and that LoopNet therefore was a copier strictly liable for infringement of CoStar's rights under sec. 106, regardless of whether LoopNet's role was passive when the photographs were copied into its system.

Relying on Religious Technology Center v. Netcom On-Line Communications Services, Inc., 907 F. Supp. 1361 (N.D. Cal. 1995), the district court entered summary judgment in favor of LoopNet on the claim of direct infringement under sec. 106. We agree with the district court. Because LoopNet, as an Internet service provider, is simply the owner and manager of a system used by others who are violating CoStar's copyrights and is not an actual duplicator itself, it is not directly liable for copyright infringement. We therefore affirm.

Google & Yahoo & Ebay & Amazon file amicus brief in support of LoopNet December 2003