LoopNet
Encyclopedia
LoopNet is a public company based in San Francisco, California
. Its primary business is to provide commercial real estate listings (for sale and for lease) in the United States. LoopNet became a public company in spring of 2006. LoopNet has become regarded as one of the success stories to come out of the heady days of the "dot com" explosion during the 1990s.
LoopNet's current business model involves selling memberships to its site. Membership confers benefits that non-members do not enjoy. In 2008, LoopNet for the first time introduced tiered pricing structure for its memberships. (See Motley Fool article in Overview for more information)
and for the resulting rulings and case law. The various rulings established important clarification of the DMCA and earlier cases.
The case itself has become known for establishing new case law in the area of ISP responsibilities for user created content. An additional brief summary of the case to date can be found on the Electronic Frontier Foundation's website. 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.
, Inc. (NASDAQ:CSGP) announced in April 2011 that it has entered into an agreement to acquire LoopNet, Inc. (NASDAQ: LOOP), the leading online commercial real estate marketplace, in a transaction valued at approximately $860 million.
CoStar said it believes the combined company will be the premier online resource for researching, analyzing, and marketing commercial real estate properties, and the combination of the two companies' complementary services will position the combined firm to provide even more comprehensive market coverage, deliver enhanced research, analysis and marketing options, and offer greater efficiencies for customers throughout the $11 trillion commercial real estate industry, ranging from large, national brokerage and institutional market players to small, local brokers and owners.
The boards of directors of both companies have unanimously approved the transaction, which is expected to close by the end of 2011.
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
. Its primary business is to provide commercial real estate listings (for sale and for lease) in the United States. LoopNet became a public company in spring of 2006. LoopNet has become regarded as one of the success stories to come out of the heady days of the "dot com" explosion during the 1990s.
History
LoopNet was founded in 1995 by several private investors. It rapidly acquired a user-base and underwent several rounds of private Venture Capital financing in 1997 (Indo Suez), 1998 (Trinity Capital & partners) and 1999 (multi-party investment including Goldman Sachs). It underwent a merger with a competitor, Southern California based PropertyFirst.com, in early 2001. By 2003 it is reported to have become profitable and by 2006 it was able to float shares in an initial public offering (NASDAQ:LOOP) (Credit Suisse was the lead underwriter).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 sellers with buyers over an open and free network have remained unchanged to the present day.LoopNet's current business model involves selling memberships to its site. Membership confers benefits that non-members do not enjoy. In 2008, LoopNet for the first time introduced tiered pricing structure for its memberships. (See Motley Fool article in Overview for more information)
Legal issues
LoopNet is mainly notable for having been sued by competitor CoStar GroupCoStar Group
CoStar Group, Inc. is one of the largest providers of information/marketing services to commercial real estate professionals in the United States as well as the United Kingdom. It was founded in 1987 by Andrew C. Florance. CoStar's suite of services offers customers access via the Internet to a...
and for the resulting rulings and case law. The various rulings established important clarification of the DMCA and earlier cases.
The case itself has become known for establishing new case law in the area of ISP responsibilities for user created content. An additional brief summary of the case to date can be found on the Electronic Frontier Foundation's website. 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
Application service provider
An application service provider is a business that provides computer-based services to customers over a network. Software offered using an ASP model is also sometimes called On-demand software or software as a service ....
being similarly shut down by the courts). CoStar
CoStar Group
CoStar Group, Inc. is one of the largest providers of information/marketing services to commercial real estate professionals in the United States as well as the United Kingdom. It was founded in 1987 by Andrew C. Florance. CoStar's suite of services offers customers access via the Internet to a...
unsuccessfully argued that LoopNet was an active party to the violations and therefore guilty itself of copyright violation.
CoStar Group Buyout
CoStar GroupCoStar Group
CoStar Group, Inc. is one of the largest providers of information/marketing services to commercial real estate professionals in the United States as well as the United Kingdom. It was founded in 1987 by Andrew C. Florance. CoStar's suite of services offers customers access via the Internet to a...
, Inc. (NASDAQ:CSGP) announced in April 2011 that it has entered into an agreement to acquire LoopNet, Inc. (NASDAQ: LOOP), the leading online commercial real estate marketplace, in a transaction valued at approximately $860 million.
CoStar said it believes the combined company will be the premier online resource for researching, analyzing, and marketing commercial real estate properties, and the combination of the two companies' complementary services will position the combined firm to provide even more comprehensive market coverage, deliver enhanced research, analysis and marketing options, and offer greater efficiencies for customers throughout the $11 trillion commercial real estate industry, ranging from large, national brokerage and institutional market players to small, local brokers and owners.
The boards of directors of both companies have unanimously approved the transaction, which is expected to close by the end of 2011.