LoopNet
 | The topic of this article may not meet Wikipedia's general notability guideline. (May 2020) |
 | |
Type of site | Subsidiary of CoStar Group |
|---|---|
| Founded | 1995 |
| Headquarters | |
| Key people | Andrew Florence, CEO |
| Industry | Technology |
| URL | www |
With more than six million unique visitors each month, LoopNet is the most heavily trafficked online commercial real estate marketplace. LoopNet offers detailed information about for-lease and for-sale commercial property listings, as well as businesses-for-sale listings in the United States and Canada.
LoopNet is owned by CoStar Group, which owns and operates information and marketplace websites that attracted an average of approximately 55 million unique monthly visitors in aggregate in the first quarter of 2020.
History
LoopNet was founded in 1995 by Dennis DeAndre. Working alongside Steve Midgley, LoopNet's engineer, DeAndre and Midgley built LoopNet into the Internet's largest commercial real estate listing service. LoopNet then underwent three rounds of private Venture Capital financing in 1997 (Indo Suez), 1998 (Trinity Capital & partners) and 1999 (multi-party investment).[2] By 2003 it is reported to have become profitable and by 2006 it was able to float shares in an initial public offering. In April 2012, CoStar Group acquired LoopNet for about $860 million in cash and stock.[3]
Business
LoopNet was an early venture in Internet-based user-created content. As early as October 1996 virtually all of its commercial property listings were being entered by its users directly. Over time, LoopNet added the capability to import listings in an automated manner. But the core principles of its business: connecting owners, investors and brokers with qualified tenants and buyers have remained unchanged to the present day.[4]
Listings on LoopNet receive unprecedented access to the professional commercial real estate community and unmatched exposure to the largest actively searching tenant and investor audience. LoopNet is designed to support connections and tours in a completely virtual environment, offering professional architectural photography, high-definition video, group touring capabilities and other tools to help advertisers achieve exposure and connect to qualified tenants and buyers.
As of April 2020, LoopNet had more than 6 million unique monthly visitors.[citation needed]
Legal issues
In CoStar Group, Inc. v. LoopNet, Inc., LoopNet is also notable for having been sued by competitor CoStar Group and for the resulting rulings and case law. LoopNet won the case and the countersuit against CoStar. CoStar ultimately acquired LoopNet in April 2012. Prior to that time, the various rulings established important clarification of the DMCA and earlier cases.
The case has become known for establishing new case law in the area of ISP responsibilities for user created content. The case followed close on the heels of the relatively better known CoS v Netcom case (better known as Scientology vs. the Internet), though LoopNet's case has since become a protracted legal battle between the two rival companies, apparently concluding in a final appellate ruling in 2006, almost 9 years after the original action was filed.
LoopNet was successfully able to adopt a defense that asserted that, as an operator of an Internet website, it was no different from Netcom (at the time a dial-up internet connectivity provider), and was therefore only a by-stander to the copyright violations of its user base. This ruling has provided crucial precedent and copyright liability protection for vast numbers of similar websites since.
LoopNet was able to show that it already policed any user violations after the fact and was able to avoid being required by the court to stop future violations before they occur (such a ruling could have effectively shut down LoopNet's website, and opened the door to many more Internet ASP's being similarly shut down by the courts). CoStar unsuccessfully argued that LoopNet was an active party to the violations and therefore guilty itself of copyright violation.
References
- ^ "Alexa Internet: Loopnet.com". Alexa Internet.
- ^ Red Herring article, 2000
- ^ Sernovitz, Daniel J. (30 April 2012). "CoStar Group completes LoopNet deal". American City Business Journals.
- ^ Cohen, Joyce (13 April 2007). "Finding a Vacant Lot to Buy". The New York Times. ISSN 0362-4331. Retrieved 23 April 2019.
