Move Asks Court to Block CoStar Group’s Access to Files in Trade Secrets Lawsuit

Headlines

• Move, Inc. asks court to block CoStar Group’s access to files in trade secrets lawsuit
• CoStar Group accuses Move of using a "mid-level employee as a pawn" in the lawsuit
• Realtor.com parent company wants court to order CoStar Group to hand over files and electronic devices used by former employee

Introduction

Two weeks after filing a theft of trade secrets lawsuit against CoStar Group, Move, Inc. has asked a California judge to block CoStar Group’s access to files at the center of the lawsuit. Move’s attorneys filed a preliminary injunction with Judge Steve Kim of the U.S. District Court in California, asking the court to block CoStar Group and former Realtor.com News and Insights Editor James Kaminsky’s access to Move-owned files.

Background

Move, Inc. filed the lawsuit against CoStar Group in June, alleging that Kaminsky, who joined Homes.com in January, had accessed Move-owned files at least 37 times after leaving the company. Move claims that Kaminsky accessed the files to obtain trade secrets and confidential information about Realtor.com’s editorial budget, audience and revenue numbers, as well as employment summaries for several Move employees.

Preliminary Injunction

In addition to the preliminary injunction, Move’s counsel is asking the court to order CoStar Group to provide a list of electronic devices used by Kaminsky since joining Homes.com, including desktop computers, laptops, cell phones, and other devices. Move is also seeking a forensic inspection of these devices to determine if any stolen information has been stored or transmitted on them.

CoStar Group’s Response

CoStar Group General Counsel Gene Boxer characterized the preliminary injunction as "a knee-jerk filing" and another "PR stunt" from Realtor.com. Boxer accused Move of using a "mid-level employee as a pawn" in the lawsuit and claimed that Move has "zero evidence of any involvement by CoStar."

Lawsuit Background

The lawsuit is the latest chapter in the ongoing battle between Move and CoStar Group over which residential portal can rightfully claim the second-place spot during a pivotal point in the years-long portal war. CoStar Group caught the industry’s attention in October 2023 when the company announced that Homes.com had drawn 100 million monthly unique visitors in September, a metric that meant Homes.com had grown its traffic by 117 percent in one month.

Portal War

The stakes have heightened since then, with both companies engaging in a marketing blitz to drive traffic and memberships to their respective sites. Realtor.com CEO Damian Eales has been critical of CoStar Group’s claims, accusing the company of "casting Homes.com Network traffic figures as Homes.com traffic figures." In July, Move took Eales’ concerns to the Better Business Bureau National Programs’ National Advertising Division, which recommended that CoStar stop using certain advertising claims.

Conclusion

The court will decide on the preliminary injunction during a hearing on August 14. The lawsuit highlights the importance of protecting trade secrets and confidential information in the competitive world of residential real estate.

FAQs

Q: What is the purpose of the preliminary injunction?
A: The purpose of the preliminary injunction is to block CoStar Group’s access to files at the center of the lawsuit and to prevent further misappropriation of trade secrets.

Q: What files is Move seeking to protect?
A: Move is seeking to protect files outlining core information about Realtor.com’s editorial budget, audience and revenue numbers, as well as employment summaries for several Move employees.

Q: Why is Move seeking a forensic inspection of Kaminsky’s electronic devices?
A: Move is seeking a forensic inspection of Kaminsky’s electronic devices to determine if any stolen information has been stored or transmitted on them.

Q: What is the significance of the lawsuit?
A: The lawsuit highlights the importance of protecting trade secrets and confidential information in the competitive world of residential real estate.

Q: What is the current state of the portal war?
A: The portal war between Move and CoStar Group continues, with both companies engaging in a marketing blitz to drive traffic and memberships to their respective sites.

Author: www.inman.com

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