VHT, Inc. v. Zillow Group, Inc., No. 17-35587 (9th Cir. 2019)Annotate this Case
VHT filed a copyright infringement suit against Zillow, alleging that Zillow's use of photos on its Listing Platform and Digs exceeded the scope of VHT's licenses to brokers, agents, and listing services who provided those photos to Zillow. The Ninth Circuit held that VHT failed to satisfy its burden of demonstrating that Zillow directly infringed the photos displayed on the Listing Platform, because VHT failed to provide evidence showing that Zillow exercised control; selected any material for upload, download, transmission, or storage; or instigated any copying, storage or distribution of the photos. The panel also held that VHT did not present substantial evidence that Zillow, through the Digs platform, directly infringed its display, reproduction, or adaption rights in 22,109 not displayed photos and 2,093 displayed but non-searchable photos. However, the fair use defense did not absolve Zillow of direct liability for 3,921 displayed, searchable Digs photos.
The panel affirmed the district court's grant of Zillow's motion for judgment notwithstanding the verdict with respect to secondary infringement, both contributory and vicarious infringement. In regard to damages, the panel remanded to the district court for further proceedings as to whether the VHT photos remaining at issue were a compilation, and held that substantial evidence did not show Zillow was actually aware of its infringing activity nor was it reckless or willfully blind to its infringement. Accordingly, the panel affirmed in part, reversed in part, and remanded.