The power of the Internet is the power to share information. This power landed one real estate information company in court, where a federal judge slapped them around for unlawful use of another company's photos.

In a preliminary injunction issued by U.S. District Judge Deborah Chasanow, LoopNet, Inc., was ordered to remove photos from its Web site that the company allegedly copied from CoStar Group (Nasdaq: CSGP). The ruling came in a lawsuit brought by CoStar against LoopNet and its CEO and President, Dennis DeAndre, alleging that they infringed CoStar's copyrights by unlawfully displaying and distributing CoStar's photos on the Internet.

CoStar said it was was compelled to take legal action to protect its database, the cornerstone of the company's strategy to be the most comprehensive provider of commercial real estate information.

When the judge issued the preliminary injunction, she said that CoStar had a “likelihood of success” in its claim of copyright infringement against LoopNet. The judge also warned LoopNet that, in the future, it should ensure that it does not repost CoStar photographs that have already been removed from the LoopNet Web site.

“This ruling should serve to deter anyone considering misappropriating CoStar photos or other valuable intellectual property,” said Carla Garrett, general counsel for CoStar. “CoStar has invested millions of dollars to build and continually update its proprietary database, and we will take appropriate enforcement action whenever necessary to protect our investment.”

The CoStar database contains information on more than 700,000 commercial properties in over 50 markets throughout the country, and over 660,000 digital images. In her order, Chasanow mandated that LoopNet require certain of its users to produce evidence of copyright ownership or other authorization before posting any photograph to the LoopNet Web site. The judge also ruled that LoopNet may have to restrict access to its Web site for its customers who commit “repeat acts of infringement.”

As most Web users know, infringing the copyright on an online photo is as easy as copying the image and pasting it into a new file. The judge's ruling that LoopNet must control its users is an impossible request that could set an unreasonably strict standard for all information sites on the Web.

CoStar in its suit is seeking monetary damages for past infringements, attorney's fees and a permanent injunction against LoopNet and DeAndre. A trial date has not yet been set.

In other online news, RE/Locate today launched RealtyIQ.com, an Internet portal offering comprehensive content and data on office and industrial buildings – and their tenants – in major markets.

Rather than sifting through heavy, slowly updated market research books, users can check out RealtyIQ.com during a 60-day free trial membership.

“After the bricks and mortar, information is the most valuable commodity in the commercial real estate industry, and RealtyIQ.com puts the best and deepest real estate market information into the hands of every industry professional," said Bruce Weissberg. co-founder and CEO. "Our information is up-to-the-minute and incredibly comprehensive -- data that has never before been available to the industry at large, and certainly never with such speed, accuracy and affordability."

At the outset, RealtyIQ.com offers up-to-date information on 245,000 office and industrial buildings comprised of more than 15 billion square feet of space in 47 US markets, housing 11 million tenants.

In a major strategic acquisition for the company, RealtyIQ.com last week completed the purchase of Cushman & Wakefield's national office and industrial database. The acquisition further expands RealtyIQ.com's collection capabilities and nationwide database. As part of the overall transaction, all of Cushman & Wakefield's offices are now subscribers to RealtyIQ.com's services, employing the expanded data and on-line tools across the country.

The information, verified and continuously updated on a 30-day cycle, with additional real-time postings, is divided into five categories: buildings; ownership; available space; tenants; and done deals.

Published: March 21, 2000

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