NAR meets first payment milestone with CIVIX

The quick background: In December 2005, a company called CIVIX sued NAR, Move (which runs, and claiming the companies’ websites infringed on CIVIX’s patents for location-based services. Later CIVIX also sued two giant MLSs: MRED (in Illinois) and MRIS. Move and MRIS each settled for an undisclosed sum.

Seeing the writing on the wall, about 50 MLSs across the country — each of which could be the target of a CIVIX suit — asked NAR to negotiate a blanket agreement. When the dust cleared, NAR agreed to pay the company $7.5 million to license the technology, and the MLSs were off the hook. (Considering that CIVIX was demanding $6 per member for four years, the alternative could have been crippling for MLSs and Realtor associations; NAR estimated it would have cost the industry $20 million.)

So CIVIX agreed not to sue any MLS or Realtor association if NAR raised that $7.5 million in licensing fees in three equal installments: $2.5 million by June 17, another by July 17, and another by August 16.

NAR hit that first $2.5 million goal today. But if it doesn’t meet those other goals, any MLS or Realtor association that hasn’t paid the licensing fee will be subject to a lawsuit.

Want to know more?

For some good background on the issue, check out this piece from Crain’s Detroit Business.

And for a strictly real estate perspective, read John Reilly’s piece in RealTown.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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