Update from Costar on Xceligent Judgement

 

costar-xceligent-judgement

Dear John,

Monday evening, we told you that a U.S. federal judge entered a judgment in CoStar’s favor against one of Xceligent’s primary research providers. The court found that they conspired with Xceligent to violate the Computer Fraud and Abuse Act and engage in unfair competition. The contractor admitted that they illegally copied CoStar’s content into Xceligent’s database and that Xceligent’s management directed circumvention of CoStar’s security and ordered the copying of CoStar’s content.

The facts could not be any clearer. Xceligent, a foreign owned company, has built its commercial real estate information product by copying CoStar’s content without permission. By now, three different judges have ruled in CoStar’s favor.

Doug Curry, as Xceligent’s CEO, had continued to deny the allegations and even implied that because CoStar was a successful U.S. company, Xceligent was somehow entitled to use CoStar’s products to build its own. His perverted philosophy says it was anti-competitive for CoStar to secure our computer servers to stop foreign companies from high volume theft of our content.

Doug Curry and another senior Xceligent executive’s employment terminated yesterday. News outlets reported that Mr. Curry was fired.

It seems obvious that Xceligent’s board did not find Doug’s denials credible. Why would you?

While we commend Xceligent’s board for doing the right thing today, it does not change the fact that Xceligent’s product was built using CoStar’s content. Continuing to buy or sell content that was illegally taken from another company poses serious business, ethical, and legal issues.

CoStar Group

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