Slide 1

CMLS 2011 – TucsonLegal Seminar

Listing Syndication –

MLS Exec. Perspective

UNDER ALL IS THE LAND …

For an MLS: Under all is theDATA

Data Challenges

•Protecting Member Content

•Listing Syndication

•Proper Licensing of data

•Social Media

Listing Syndication Defined

•Many definitions, but from my point ofview, pure listing syndication is:

A brokers option to post active listinginventory for his/her company on aconsumer portal that allows for searchingof active listed properties – possiblygenerating a lead and sale of that broker’slisting

How are Listings Syndicated?

•The most common syndication method isthrough use of a 3rd party such as List Hubor Point2.

•Some Franchisors also syndicate listingson behalf of their franchisees.

•Other 3rd party software (such asListingbook) offer syndication options aswell.

How does it work?

•Each major syndicator provides the ability forbrokers to set up a free account to syndicatelistings.

•Typically there is a dash board for the broker toselect which sites he/she wishes to authorize todisplay their listings.

•Using the channel selections of the broker,listings are then distributed to the approved sites.

Is That All There is to it? NO

•It used to be…..but it’s not that wayanymore – we took a nap and woke up toSyndication 2.0

•New Challenges have emerged and weare struggling to problem solve.

Are There Concerns?

To Name a Few (10 to be exact)

#10Bad Data

#9Re-Syndication with no broker choice

#8Agents advertising other brokers listings – social media

#7Unauthorized uses & Derivative Works - Use for 3rd PartyIntegration (Syndigration)

#6No control outside of the license agreement with vendors

#5No consistency in terms of use – changes with each site

#4Broker Liability for incorrect data?

#3Broker Choice – MLS responsible?

#2MLS Liability for publisher use & shut-down?

1.8

#10: Bad Data – how to get itright!

•Publishers use data from multiple sources in addition tosyndicated via vendor (agent, other vendors, franchisors, etc.)

•Duplication creates a pool of listings to choose from – which iscorrect?

•Brokers find it difficult to get old/bad data removed from any site

•Manual data entered by an agent may not be updated, creatinganother question in the selection process

•Sellers are frustrated when they find their listing data isincorrect

•Brokers (some, not all) are frustrated because of outdatedcontent

•Integrated content on some sites is incorrect (maps, etc.) andfurther clouds the issue

Syndicator

Primary Channel

Extended Channel

Syndicator

→→→→

Oodle

→→→→

MySpace

Syndicator

→→→→

Zillow

→→→→

FarmTalk

Brokers using vendors have choices of “publishers” – but nochoice in the extended sites. One vendor – 90 channels, 400sites total

#9 – Broker Control (??)

If broker has no control over “extended sites”

is that syndication?

#8 – Emerging Concern –Social Media

•Agents advertising other broker’s listingswithout permission

•Display of another brokers listing with noacknowledgement, price changes, etc.

•If it’s IDX – MLS can handle

•If it’s another Realtor – Ethics?

•If it’s just someone?? How to protectbroker? Is he liable?

#7 – Unauthorized Use &Derivative Works

•Here is the wake up call….. Not all ofthose 400 channels actually display listingcontent for consumers to find to create alead and hopefully a sale. Some have NOdata at all for consumer display.

•What are the channel operators doing withthe content?

•Circumventing MLS License Agreementsin some cases - examples

MySpace.com

Farm Talk

FreedomSoft

LearnMore.communications

ePropertyStop

Listing search is free –selling ads and packagesto others – using yourcontent to generaterevenue.

Is this Syndication?

•No search portal for consumers

•Logins to access data and product?

•Are they using the content to attractothers to pay to list? Invest?

•Are the using the information to solicitbusiness from agents/brokers?

•Here is where brokers are starting to beconcerned -- someone else is monetizingtheir content

#6 – The MLS LicenseAgreement

•The MLS agreement is between the MLS and thevendors for the content – with broker’spermission

•Once the syndicator has the data, the MLS nolonger controls the uses

•Question: Can the MLS put requirements in thelicense agreement with the syndicator – noderivative works, update requirements

•Can MLS require that brokers have a choice ofthe extended networks? Require that there be no“check all” option?

#5 – Terms of Use

•See #6 – same issues here.

•Your thoughts on a terms of use templatethat could be adopted for local use?

#4 – Broker Liability

•Is there broker liability for incorrectcontent on the Internet?

•If changed by a 3rd party?

•If entered incorrectly by an agent or notupdated

•How far does he/she need to go to trackdown inaccurate data and have itremoved.

#3 – MLS Role in Syndication

•The Broker chooses the sites she wants her listings tobe on – but that is not the only source of what isdisplayed.

•She wants her listings everywhere for consumers tosearch, but not for other 3rd party uses.

•Brokers don’t want the MLS to limit them, but want theMLS to go after those that aren’t actually “syndicating”.

•If the broker is making the choice, should the MLS playany role at all even thought the license is with the MLS(for syndicators)

•Should 3rd parties authorized to have data for other usesbe allowed to add “syndication” as an option?

#2 – MLS Liability

•If MLS finds sites that are not actual listing publishers,we have been told by vendors that they will shut off thatportal.

•We are not privy to the vendor’s agreement withpublishers – if we say “no” to a “syndigrator”, what mightour liability be?

•Should we consider renegotiating with the vendors thatsyndicate – templated language that can be used?

•If so, would we be able to hold the vendor doing thesyndication responsible for enforcing the terms of use?

Data Comparison & Update

•At least one publisher is asking for a datafeed to validate the data on their site. Partof that program is to notify the broker andMLS when errors are found – excellenttool

•Liability question: they want to changethe data on property listings from sourcesother than the MLS – what is our liability ifsomething goes wrong?

#1 – Help in FindingSolution(s)

•Some MLSs syndicate themselves undertheir own terms – how might an MLStransition to that method?

•Some MLSs do nothing but send data toplaces the broker has requested but donot use other vendors

•The rest of us are looking for ideas onhow to manage, license, protect and stillallow the brokers to have thechoices…???