CoStar Group, Inc. v. Commercial Real Estate Exchange Inc., 2:20-cv-08819

CoStar Group operates LoopNet, a major U.S. commercial real estate listing website, and alleges that competitor CREXi unlawfully copied and published copyrighted images and data from LoopNet.
CREXi denies liability and claims many images in question actually belong to brokers, not CoStar, and counterclaims that CoStar engages in anticompetitive practices by asserting false copyright claims.
Throughout the litigation, CoStar has amended its complaint multiple times, adding and dropping factual allegations and legal claims.
The present motion concerns CoStar's request to file a Third Amended Complaint (TAC), seeking to drop several claims and add 1,499 new images to its infringement claims, as well as updating factual allegations based on further discovery.
CREXi opposes the addition of new factual allegations and the 1,499 images, particularly arguing that 107 images are time-barred and the amendment would prejudice CREXi by requiring renewed discovery.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether CoStar should be allowed to amend to drop certain claims and add new images/factual allegations	CoStar contends amendment is necessary to reflect discovery and litigation developments	Does not oppose dropping claims, but opposes adding new images and factual allegations	Allowed in part; claims may be dropped, other amendments allowed except as to time-barred images
Whether adding 1,499 new images is unduly delayed or in bad faith	Delay was not in bad faith and CREXi was notified of intent to amend	Argues delay was undue as CoStar waited months after knowing of new images	No bad faith found; delay occurred but was not disqualifying
Whether amendment would prejudice CREXi	No new theories or claims, only update based on evidence learned in discovery	Claims it would require reopening discovery, creating prejudice	No prejudice found as no reopening of discovery required
Whether amendment is futile due to time-bar for 107 images	Claims relate back; alleges discovery rule applies	Contends claims for these 107 images are time-barred and do not relate back	Found time-barred as to 107 images; amendment denied as to those

Foman v. Davis, 371 U.S. 178 (factors guiding leave to amend, with prejudice as most important)
Brown v. Stored Value Cards, Inc., 953 F.3d 567 (leave to amend should be granted with extreme liberality)
Lockheed Martin Corp. v. Network Sols., Inc., 194 F.3d 980 (delayed amendments causing new discovery can be prejudicial)
Texaco, Inc. v. Ponsoldt, 939 F.2d 794 (evaluating time elapsed versus need for amendment)