Introduction

Microsoft‘s search engine, Bing, recently found itself at the center of controversy due to the unauthorized display of Multiple Listing Service (MLS) data. Industry leaders and real estate professionals swiftly reacted, expressing their discontent and raising concerns over this breach of licensing agreements.

The Issue at Hand

Bing’s Real Estate Portal

Microsoft introduced a new feature on Bing.com/homes that mimicked a real estate portal, showcasing homes for sale or rent in a user-friendly, searchable neighborhood format.

The listings displayed typical real estate information, including prices, square footage, and building details, which were sourced from MLS data.

Initial Reactions

Sam DeBord, CEO of the Real Estate Standards Organization (RESO), was among the first to raise the alarm. He highlighted on X (formerly Twitter) that Bing.com/homes was operating as a real estate portal without being a member of any MLS, thus violating MLS licensing terms.

“IDX data isn’t sublicensed to non-participants of MLSs,” DeBord emphasized on X.

Industry Outrage and Action

Escalating Concerns

DeBord’s comments ignited a wave of outrage within the real estate community. Industry consultant Victor Lund described Microsoft’s actions as “a declaration of war,” calling for immediate cessation of this practice. The collective uproar led to Microsoft beginning to remove the unlicensed data from Bing.com/homes in major markets by June 7.

“Great job, good outcome, let’s get back to work,” DeBord tweeted, acknowledging the industry’s swift response.

Microsoft’s Silence

Despite the backlash, Microsoft remained reticent. When approached for comments, a spokesperson for the company stated they had nothing to share at the moment.

The Broader Implications

Legal and Economic Ramifications

The unauthorized display of MLS listings by a search engine not only risks violating copyright laws but also undermines the value of MLS services, especially during a critical period for the real estate industry.

Realtor-owned MLSs are already under pressure due to ongoing commission lawsuits and the looming deadline of August 17 to comply with new rules mandated by a $418 million NAR settlement. These organizations are also working diligently to provide education and training to their subscribers.

The Value of MLS Data

DeBord elaborated on the intrinsic value of MLS data, emphasizing the investment brokers make in creating listing information and media.

“Brokers spend time, money, and expertise creating listing information and media. The MLS aggregation of listings makes this data even more valuable, and that’s proven when the world’s most valuable company wants to monetize it.”

He stressed that brokers own this value and should control where their listings are displayed and redistributed.

“They use it to help their clients and to build their businesses. It’s critical that the licenses brokers and their MLSs create to share this value are respected. Enforcing the licenses today can reduce future incentives for others to misuse the data.”

The Role of Zillow and Redfin

Involvement of Leading Portals

The controversy also involved two leading home search portals: Zillow and Redfin. On Bing.com/homes, many listings included links directing users to Zillow and Redfin’s property listings.

Zillow’s Response

Zillow promptly reached out to Microsoft, requesting the removal of their data. The company stated there was no licensing agreement with Microsoft and that its content, including the popular Zestimate feature, was not authorized for use on Bing.

Redfin’s Actions

Redfin similarly took action. Alina Ptaszynski, Redfin’s corporate communications manager, noted that Redfin worked with its MLS partners to ensure the listings were removed from Bing.

“As a brokerage, Redfin spends considerable time and effort ensuring our agents, site, and apps are compliant with all MLS rules, policies, and our license agreements. Redfin does not have a data agreement with Microsoft,” Ptaszynski stated.

Additional Considerations and Future Outlook

Protecting Intellectual Property

The incident underscores the importance of protecting intellectual property in the digital age. Unauthorized use of MLS data not only infringes on copyrights but also devalues the hard work and investment of brokers and MLSs.

Enhancing Compliance and Enforcement

Going forward, there must be a stronger emphasis on compliance and enforcement of licensing agreements. Industry leaders need to collaborate to establish more robust mechanisms to prevent unauthorized use of data.

Technological Solutions

Implementing advanced technological solutions, such as blockchain for tracking data usage or AI-driven compliance monitoring, could help ensure that MLS data is used appropriately. These technologies can provide transparency and accountability, deterring potential misuse.

Education and Awareness

Continuous education and awareness campaigns are vital to inform brokers, agents, and the public about the importance of adhering to licensing agreements. This could include webinars, workshops, and detailed guidelines on best practices for data usage.

Collaborative Efforts

A collaborative approach between technology companies, MLSs, and real estate organizations can lead to more effective policies and practices. Regular dialogue and partnerships can help address emerging challenges and ensure that data usage respects the rights of all stakeholders.

Conclusion

The recent backlash against Bing’s unauthorized display of MLS listings highlights significant issues within the real estate industry regarding data use and intellectual property rights. While the swift response from industry leaders has led to the removal of the data, this incident serves as a critical reminder of the need for vigilant protection of MLS data and stricter enforcement of licensing agreements. As the industry continues to evolve, it is imperative to adopt robust technological solutions, enhance compliance efforts, and foster collaborative relationships to safeguard the value and integrity of MLS data.