For all the celebrating of Zillow’s new iPhone app, a glance back at history shows the first Zillow iPhone app hit the streets back in May 2008 as iZillow. It is now coming back to bite the creator, Auston Bunsen, in Z butt.

Auston says he used the Zillow API to create an iphone app for Zillow back in May 2008:
Last year in May I created an iPhone interface for Zillow’s “zestimator” – it was all fun and games, got a little bit of blog coverage/mentions & an overall good response. Zillow seemed to be all for it.
Then the New York Times included it in one of it’s articles – and Zillow asked me to very simply put the words “unofficial version” and a link at the bottom of the app.
No problem. Done. (link added)
Apparently, Zillow knew about the iZillow iPhone app:

via FoREM .
Auston now claims Zillow is offering $250 for the domain and the app. Or else. He asked for advice:
Zillow has launched their own iPhone app (which rocks) – but wants me to take down mine and hand over the domain for “a couple hundred bucks”.
I dont feel this is fair and they’re trying to stiff me with a measely $250. What would you do? What do you suggest? What are your thoughts?
Read more about zis Zing at Hacker News.
This Hacker News comment was reflective of one side of the story:
Don’t sell — certainly not for $250. What cheapskates. You probably know Frink and Barton capitalized zillow with $57,000,000, part of their profits off Expedia.com: if zillow is doing so swell, if you believe all the self-hype you read on that blog, izillow is not only worth more, but Frink and Barton can afford to pay you much, much more. I like the idea someone suggested of “parody and criticism.” That’s not hard to do with zillow — so easy and fun to make a “comedy” out of all the bs they’ve pulled on homeowners and agents alike since they’ve been running. A number of people have been working on a future site called zillowclassaction.com, a data collection tool. We may decorate the site with a Z upsidedown and backwards. There are sites like zilo, I’ve been told, and no one has copyright on the letter “Z” — to my mind it still stands for that horseman who rides “out of the night, when the full moon is bright” … that bold renegade making ZZZZs with his blade, Z’s that stands for A LOT MORE than zillow. “Stand sure” on principle — and give em hell.
My 2 cents (not to be taken as legal advice– heck, you haven’t send me a check … have you?):
iZillow is clearly a trademark violation (heck, you even have their colors). However, if Zillow knew about it (as it seems they did) and said appending “unofficial” was OK to keep it out there (though I’d be shocked if they did not object to the name– you did object at the time, right RB?), you have a case for consent and/or waiver. If you want to stand any chance of keeping your app alive, change the name to something that will not confuse the public of the source of the app. [Note: I haven't read the TOS (again, no check)-- so there might be some more stuff to consider. Don' t toss your emails with the company.]
Advice to “official” Z boys and girls: You oughta spend some of that $87 million on a good trademark lawyer. You can’t let folks use your trademark from the git-go or you risk putting it in the public domain. Take some lessons from the NAR who, through aggressive defense of the mark, have kept realtor out of the public domain (and their tears out of a Kleenex).
UPDATE: Joel Burslem at FoREM reports today, May 6th, that Zillow and iZillow have settled for an undisclosed amount but “more than the $250 first offered.”
Sources and further reading:
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