Famous attorney Alex Spiro to represent a rival of CoStar in a crucial legal battle

Crexi, a competitor in the real estate data industry, has enlisted celebrity attorney Alex Spiro to defend it in a critical legal dispute with CoStar Group. Spiro, who has represented prominent figures such as Elon Musk and Jay-Z, will now lead Crexi's defense in this high-stakes case.

CoStar, valued at $29 billion and renowned for its real estate data and transaction platforms, alleges that Crexi employed offshore staff in India to "copy and crop" images from CoStar's LoopNet site, removing the company's watermark. The lawsuit, originally filed in 2020, saw a partial ruling in June affirming CoStar's photo ownership, and is now moving toward trial.

Crexi has countersued, claiming CoStar has abused its market dominance in the office-leasing data sector, though their antitrust claims were initially dismissed. An appeals court reinstated these claims earlier this year. Crexi had requested that both the photo theft and antitrust cases be tried together, but the court declined, meaning Crexi must first focus on defense in the original lawsuit.

Bringing in a high-profile lawyer like Spiro, who charges $3,000 per hour, signals Crexi's determination and may send a warning to other CoStar competitors, including Zillow, which recently faced similar litigation from CoStar regarding copyright violations on Homes.com.

"CoStar will finally be held accountable for years of misconduct against the commercial real estate industry," Crexi stated, announcing Spiro and the Quinn Emanuel team will spearhead their trial strategy.

CoStar is being represented by lawyers from Latham & Watkins. The dispute echoes a past legal battle between CoStar and Xceligent, another LoopNet spin-off that went bankrupt in 2017 following similar copyright and antitrust allegations.

Analysis: High-Stakes Legal Clash in Real Estate Data Sector

Crexi's decision to hire Alex Spiro underscores the seriousness of its defense strategy against CoStar Group. Spiro's track record with high-profile clients signals Crexi's intent to aggressively contest allegations of image copyright infringement.

The case highlights ongoing tensions in the commercial real estate data market, where dominant players like CoStar face scrutiny for alleged anti-competitive practices. Crexi's countersuit on antitrust grounds, recently reinstated by an appeals court, adds complexity to the dispute.

Legal observers note the situation mirrors the earlier conflict between CoStar and Xceligent, which led to Xceligent's bankruptcy. The outcome could set important precedents for how intellectual property and competitive behavior are enforced in the industry.

With trial preparations underway, the focus remains on the original copyright claims, though broader implications for market competition may continue to influence sector dynamics. Crexi’s high-profile legal team positions the company to challenge CoStar’s practices and potentially alter competitive behavior in the real estate data field.

Sources:

• Celebrity lawyer Alex Spiro will represent a CoStar competitor in the legal fight of its life

Author: Maya Henderson
Maya Henderson is a journalist focused on technology and startups. She has experience in leading IT publications and excels at conducting interviews and creating visual content.