Point2 encourages publishers to play nice

Yardi subsidiary, Point2 is changing its data distribution policies to align with what it believes to be the interests of MLSs, Associations, Brokers and agents in the US, similar to what it has introduced in Canada with the Canadian Real Estate Association (CREA). Since Yardi purchased Point2, they have renewed determination to protect the data rights of agents, brokers, and their partner Associations of REALTORS(r) and MLS.

In the past, the default distribution setting for Point2 has been broker-opt out rather than broker opt-in.  WAV Group has never been in favor of Broker Opt-out programs. Broker opt-out means that unless notified by the listing broker, Point2 distributed the listing data to all of its publisher recipients. The big problem with this policy is that the broker was subject to the publisher’s terms of use for the data, which might be contrary to the best interest of the broker. For many brokers the portal’s terms of use are fair – but for others, they are not.

Point2 is now in the process of notifying publishers that they must conform to a set of fair use terms if they want the convenience of broker opt-out data. If they do not conform to the new terms, the data to that publisher will be switched to opt-in. As of January 1st, 2013, any publisher not conforming to the new agreement will see somewhere between 200,000 and 1.2M listings taken out of their Point2 feed.

Some of the key terms of the agreement are as follows.

• The license only grants the publisher the ability to display listings on authorized websites – effectively eliminating the problem of resyndication without a license.
• The relevant owner of the listing content retains all rights title and interest and ownership in the data – effectively resolving the issue of publishers selling data, creating derivative products with the data, etc.
• Publisher must agree to install a web bug that allows Point2 to track the – number of times displayed in search results; number of views; click through, number of leads.
• Content may not be used for any purpose when a listing is not active. This is huge as it cures the problem of stale data languishing on publisher websites, and the display of sold data.
• Publisher may not use the personal contact information of agents or brokers to market to, or contact that agent or broker – nor will it supply that information to any third party.
• Publisher must display the clickable URL of content owner, show the branding in a prominent way, display email in a non-scrapable way, and display the contact phone number.
• Publisher will not capture any consumer prospects or leads and resell or divert them to any third party.

WAV Group thinks that this may be the first step toward turning the tables on syndication and actually requiring publishers to pay a license fee for the opportunity to display broker data. Move did something similar to this when they purchased Listhub, adding in a publisher grading system to their dashboard. This goes a bit farther. It will be interesting to see if Move reacts and adopts the same terms as Point2.

Here is a copy of the Point2 License agreement. It was provided to WAV Group for feedback with permission to publish. Point2 is not a WAV Group client.

Data Distribution Agreement

This Data Distribution Agreement (“Agreement”) is entered into by and between Yardi Canada Ltd., a Canada corporation doing business as Point2 Technologies (“Point2”), and {insert company name) a _______ corporation (“Recipient”).

WHEREAS,  Point2 is engaged in the business of providing online real estate services to real estate boards and associations, multiple listing services and real estate professionals including distribution of data to third party listing advertisers;

WHEREAS, Recipient is engaged in the business of providing listing advertising services to real estate professionals; and

WHEREAS, Recipient wishes to expand its online listing presence by advertising the Licensed Content (defined below) provided by Point2.

NOW THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. 1.     DEFINITIONS
2. a.     “Content Source” means real estate boards and associations, multiple listing services, brokerages and real estate professionals who supply Licensed Content to Point2.
3. b.     “Data Distribution Engine” means the proprietary software Point2 employs to process listing data from Content Sources and distribute the data to recipients engaged in the business of providing listing advertising services to real estate professionals.
4. c.     “Effective Date” means the date of the last party signature on this Agreement.
5. d.     “Licensed Content” means the Licensed Content that Point2 distributes to listing advertising services.
6. e.     “Point2 Members” means the members of the Point2 Real Estate Network.
7. f.      “Point2 Real Estate Network” means the listings, brokers and agents that are supplied to Point2 from the Content Source.

1. 2.     LICENSE GRANT
2. a.     License.  Subject to the terms and conditions of this Agreement, Point2 grants Recipient a non-exclusive, limited, license to display Licensed Content during the Term (as defined below) of this Agreement, solely for the purpose of displaying listing information on the website described in Exhibit B during the period in which the listing is active. Recipient shall comply with the requirements of the Point2 Syndication Integration Guide attached hereto as Exhibit A (“Syndication Integration Guide”).  Recipient may use consultants and other contractors in connection with the performance of its obligations and exercise of its rights under this Agreement, provided that such consultants and contractors agree in writing to abide by the terms and conditions set forth in this Agreement.
3. b.     Reservation of Point2 Rights.  Except for the license granted hereunder as between the parties, Point2 or the relevant owner of the Content Source retains any right, title and interest in and to the Licensed Content.  Point2 retains all right, title and interest and ownership in the Data Distribution Engine. Point2 transfer no data rights to Recipient.  Data rights are expressly retained by the Content Source.
4. c.     Reservation of Recipient Rights.  Except with respect to Section 6.i. below, Point2 understands and agrees that nothing in this Agreement will prevent or restrict Recipient from using data obtained from a source other than Point2 under this Agreement.  Point2 acknowledges and agrees it will not have any right, title or interest in any information, content, or data used by Recipient in conjunction or association with the Licensed Content, and Point2 shall not make any claim of ownership or interest in any such information, content, or data.
5. d.     Third Party Relations.  Point2 shall be responsible for accepting and responding to any communication, modification or removal requests initiated by a Content Source that has rights to the Licensed Content where such communication arises from having information on the Recipients website listed in Exhibit B and pertains to the delivery or accuracy of the Licensed Content.
6. e.     Fees.  In consideration for the license granted herein, Recipient shall pay Point2 the fees set forth in Exhibit C attached hereto.  In addition to the fees, Recipient will pay all applicable taxes.  All undisputed invoiced amounts are due in full within 30 days after the date of the invoice (“Due Date”). Any amount not received by the Due Date will be past due and subject to the lesser of 1 ½% per month or the highest rate permitted by applicable law and attorneys’ fees and costs incurred by Point2 in collecting such amounts.
7. f.      Marketing.  In order to assist with increasing the Recipient’s market exposure through Point2 Members, Point2 will provide marketing services for the Recipient as outlined in Exhibit D attached hereto.
   1. 3.     TERM AND TERMINATION
   2. a.     The term of this Agreement (“Term”) shall commence on the Effective Date and shall continue for one year, unless terminated by either party.
   3. b.     Point2 may terminate this Agreement at any time by providing 30 days written notice to Recipient.
   4. c.     Point2 may terminate this Agreement by providing 5 days written notice to Recipient, if Recipient displays less than 50% of the listing feed provided by Point2.
   5. d.     Recipient acknowledges and agrees that Point2 may immediately terminate this Agreement if the  Recipient is improperly using the Licensed Content, including but not limited to the following:
      1. i.      Recipient’s use of the Licensed Content does not conform to the Syndication Integration Guide;
      2. ii.     Recipient has not provided a publishing report during the prior 5 day period;
      3. iii.   Recipient has not accessed and updated Point2’s listing feed within the prior 24 hour period;
      4. iv.   Recipient has breached any term or condition of this Agreement and failed to cure within five (5) business day after receiving written notice thereof;
      5. v.    Recipient has not embedded a web bug; or
      6. vi.   Recipient has not complied with the reporting requirements under Section 6(h)(i) herein.

1. 4.     USE OF DATA.  Licensed Content may not be used for any purpose other than listing properties when they are for sale or rent.  Licensed Content may not be used for any purpose when the listing is not active.  Recipient will use its best efforts to display the Licensed Content accurately and with all tracking information provided by Point2.

2. 5.     USE OF PERSONAL INFORMATION
   1. a.     Included in the Licensed Content is the personal information of Point2 Members, including but not limited to, their email, phone number and address (the “Personal Information”). Recipient shall not use the Personal Information to market or contact any Point2 Member, nor will Recipient sell or supply this information to any third party for any reason. This section shall not prohibit Recipient from acquiring such Personal Information from a source independent of the Licensed Content and marketing and/or contacting such Point2 Members. 
   2. b.     Recipient may contact Point2 Members in the format specified in the Syndication Integration Guide for the purpose of delivery of email leads.  Email leads will be delivered to the Point2 Member whether they choose to claim their listing through the Recipient’s claiming process or not.  All leads delivered to Point2 Members from the Recipient must include the lead name (when provided) and an email address as entered by the lead.
   3. c.     Recipient shall not display the Personal Information of Point2 Members except for the purpose of using such information on Recipient’s website(s) where real estate listing information is normally published.

1. 6.     NOTIFICATION OF LISTING.  Recipient agrees to notify Point2 of instances of unacceptable listing or format of Licensed Content that are undesirable to Recipient. Upon said notification, Point2 shall, within a reasonable period and at its discretion, remove or repair said instance of content or format to a level acceptable to Recipient. At no time shall said unacceptable content or format of Licensed Content constitute a reason for Recipient to discontinue the display of the other information.

1. 7.     DELIVERY AND FORMAT OF LICENSED DATA
2. a.     Delivery Access.  Point2 will make the Licensed Content available to the Recipient in an electronic format, downloadable by the Recipient.  Licensed Content will be in the format as outlined in the Syndication Integration Guide attached hereto as Exhibit A.   Point2 will make available to the Recipient the Licensed Content outlined in Property Listings Submission Guide, provided Point2 has access to such content.  Point2 will update the Licensed Content made available to the Recipient on a regular basis but no less frequently than daily.  In the event that the Licensed Content contains URLs the URLs shall be used “as is” and shall not be modified by Recipient.  Any such URL provided by Point2 will link directly to a page that contains and is directly relevant to the Licensed Content.
3. b.     Content Sources.  Point2 may add or remove listings from existing or new Content Sources from the Listing Content at any time.
   1. c.     No Scraping.  Recipient will not scrape any websites supplied or powered by Point2 where such website provides information to Recipient.
   2. d.     No Derivative Works.  Recipient shall not sublicense the Licensed Content or use or display the Licensed Content in any derivative works including but not limited to Recipient’s agent apps.
   3. e.     Updates and Refreshes.  From time to time during the Term but no less frequently than once per day, Point2 will update and refresh the Licensed Content, and make the update available to the Recipient in the manner described in Section 6.a.  Point2 will ensure that the Licensed Content made available to the Recipient will be the same as the current and corresponding content that Point2 makes available to other similarly situated customers.  Regardless of whether an agent claims or augments a listing posted on Recipient’s website(s), Recipient agrees to update and refresh the Licensed Content in accordance with the terms herein.
   4. f.      Display.  This Agreement grants the Recipient the right to display the Licensed Content within the listing displays on their websites listed on Exhibit B, provided that any display links provided by Point2 with the Licensed Content shall be displayed within any portion of the Licensed Content.  Further, the Recipient agrees that each real estate listing, derived from the Licensed Content, will:
      1. Display and make clickable the listing detail URL contained in the feed,
      2. Show the listing agent’s or broker’s branding and contact information in a prominent manner, including, but not limited to their name, a “non-scrapable” email link, phone number and link to their personal website, when provided,
      3. Not display the scrapable email address of the listing agent or broker,
      4. Be used as preference over a “scraped” instance of the same listing,
      5. Recipient will end the display of a specific real estate listing when that listing is no longer included in the feed of Licensed Content from Point2 to Recipient.
      6. Recipient will first use the MLS number and second the address of specific real estate listings as unique identifiers for said listings.

In addition, the Recipient will not capture prospects or leads from the display of specific real estate listings derived from Licensed Content and sell them back to Point2 Members or divert any such captured prospects and leads to third parties.  Any consumer leads or prospects generated based on the display of the Licensed Content must be emailed directly to the broker or agent representing the specific listing.  Leads shall not be delivered by Recipient via Recipient’s proxy email or require Point2 Members to login to Recipient’s website(s) in order to obtain such leads.

1. g.     Redistribution.  Distribution of the Licensed Content by Recipient to third-party websites or other mediums is strictly prohibited.  Licensed Content must remain resident in the Recipient’s database and under the Recipient’s control.  Except as set forth in Exhibit B, Recipient does not power or display Licensed Content on any third party websites.  At any time Point2 may withdraw its approval of distribution to any third party display sites upon 30 days prior written notice to Recipient.
2. h.     Recipient Reporting.  Recipient is required to provide Point2 with publishing and/or error reporting for each listing within the Licensed Content.  Recipient must provide a decipherable error code if a listing within the Licensed Content was rejected by the Recipient.  If a listing is accepted for advertising on the Recipient website, Recipient must provide a URL to see a listing displayed on the Recipient website.  Data specifications for the transfer of this information is provided in the Syndication Integration Guide.  Recipient must provide reporting metrics for display to the applicable Content Source through Point2.  Reporting requirements shall include the metrics below, per the specifications outlined in the Syndication Integration Guide.
   1. Detail Views – Recipient shall embed a web bug within the detail view of each listing which will allow for a view stat point to flow back to Point2’s Data Distribution Engine for presentation to the agent or broker representing the listing.  The Licensed Content includes a <webbugUrl>  tag for each real estate listing which can be rendered into an image <img> tag on the applicable detail view page for each listing.
   2. Click-Throughs – Recipient shall provide counts when a consumer requests additional information from the originating agent or broker website.  The Licensed Content includes a url address specific to each listing which will allow for this stat to be collected and presented to the agent or broker representing the listing.
   3. Email Leads – Recipient shall conform to the email contact form requirements as outlined in the Syndication Integration Guide. The Licensed Content includes an email address specific to each listing which will allow for email lead stats to be collected and presented to the agent or broker representing the listing.  Recipient shall provide the lead’s email address and any other contact information provided by the lead to such agent or broker. Email leads shall be provided only to the agent or broker representing the listing.
   4. i.      Authoritative Source. Recipient grants Point2 priority in display such that in cases in which Point2 listings contained within the Licensed Content are the same listings provided to Recipient from other unpaid non-direct sources, the Point2 listings will be granted priority and will be displayed in accordance with Recipient’s generally available display terms provided that such listings are received by Recipient from Point2 before they are received through any other unpaid non-direct source.

1. 8.     REPRESENTATIONS AND WARRANTIES
   1. a.     Warranty:Each party represents and warrants the following:
      1. It has the full power and authority to enter into this Agreement and to perform its obligations hereunder.
      2. The performance of its obligations set forth herein will not conflict with or result in a breach of any agreement by which it is bound.
      3. This Agreement constitutes a legal, valid and binding obligation of such party.
      4. b.     Disclaimer. EXCEPT AS SPECIFICALLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES, AND EACH PARTY EXPRESSLY DISCLAIMS, ALL REPRESENTATIONS OR WARRANTIES IN CONNECTION WITH THIS AGREEMENT, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT OR WARRANTIES ARISING OUT OF A COURSE OF PERFORMANCE, DEALING OR TRADE USAGE.

1. 9.     INDEMNIFICATION.  Recipient agrees to defend, indemnify and hold harmless Point2 and its affiliates, directors, officers, employees and representatives from and against all third party claims, actions or demands to the extent arising out of or relating to (i) a breach of Recipient’s representations and warranties set forth herein, or (ii) Recipient’s use of any Licensed Content.

1. 10.  LIMITATIONS ON LIABILITY.  EXCEPT WITH RESPECT TO A PARTY’S SPECIFIC OBLIGATIONS HEREIN, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THIS AGREEMENT FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR RELIANCE DAMAGES (OR ANY LOSS OF REVENUE, PROFITS OR DATA), HOWEVER CAUSED, WHETHER FOR BREACH OF CONTRACT, NEGLIGENCE OR UNDER ANY OTHER LEGAL THEORY, WHETHER FORESEEABLE OR NOT AND WHETHER OR NOT THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE, AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. BOTH PARTIES AGREE THAT THESE LIMITATIONS OF LIABILITY ARE AGREED ALLOCATIONS OF RISK AND ARE REFLECTED IN THE FEES AGREED UPON BY THE PARTIES.

1. 11.  GENERAL
   1. a.     Independent Contractors. The parties agree that they are independent contractors and nothing in this Agreement is intended to make the parties partners, agents, joint venturers, or any other form of joint enterprise, or to make the employees, agents, or representatives of one of the parties into employees, agents, or representatives of the other party.  No party to this Agreement shall have any express or implied right or authority to assume or create any obligations on behalf of the other party or to bind the other party to any contract, agreement, or undertaking with any third party.
   2. b.     Severability. If any court or other authority of competent jurisdiction holds any provision of this Agreement to be invalid, illegal or in conflict with any applicable provincial, state or federal law or regulation, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the invalid, void or unenforceable provision shall be enforced to the maximum extent permissible.
   3. c.     Notices.  The parties shall deliver any notice required by this Agreement by personal delivery, certified U.S. Mail return receipt requested, or established, reputable expedited delivery carrier providing proof of delivery service, and will be deemed given upon confirmed delivery to the party to whom it is intended at its record address. The record addresses of the parties are set forth below.

If to Recipient:

Attn: <Name>

<Client Name>

<Address>

<Address>

If to Point2:

Attn: Saul Klein

YARDI CANADA LTD. DBA POINT2 TECHNOLOGIES

#500 – 3301 8^th Street East

Saskatoon, SK S7H5K5

With a copy to:

Attn: Legal Department

YARDI SYSTEMS, INC.

430 Fairview Ave.

Goleta, CA  93117

Either party may change its record address by giving written notice of such change to the other party.

1. d.     Amendments. The terms and conditions of this Agreement may not be modified or amended other than in writing signed by both parties.
2. e.     Assignment. Recipient may not assign any of its rights, or delegate any of its duties under this Agreement to any party without Point2’s prior written consent.
3. f.      Force Majeure. In the event that either party is prevented from performing, or is unable to perform, any of its obligations under this Agreement due to any cause beyond its reasonable control, such party’s performance shall be excused and the time for performance shall be extended for the period of delay or inability to perform due to such occurrence.
4. g.     Entire Agreement. This Agreement constitutes the final, complete, and exclusive statement of the agreement between the parties pertaining to this Agreement’s subject matter and supersedes all prior and contemporaneous understandings or agreements of the parties. No party has been induced to enter into this Agreement by, nor is any party relying on, any representation or warranty except those inducements, representations and warranties expressly set forth in this Agreement.
5. h.     Governing Law. This Agreement is to be construed in accordance with and governed by the internal laws of the state of California.
6. i.      Wavier.  The waiver of a party’s breach of this Agreement shall not operate or be construed as a waiver of any other or subsequent breach.
7. j.      Severability. If a court or other body of competent jurisdiction determines that any part of this Agreement is unenforceable, the remainder of this Agreement shall nevertheless remain enforceable.
8. k.     Survival. Sections 8, 9, 10 and 11 shall survive termination of this Agreement.
9. l.      Incorporation of Exhibits end Schedules. The Exhibits and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof.
10. m.   Non-exclusivity. Except as expressly provided in this Agreement, each party acknowledges that nothing in this Agreement will preclude, restrict, or in any way limit either party from entering into any similar arrangements with third parties.
11. n.     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original (including copies sent to a party by facsimile transmission or PDF) as against the party signing such counterpart, but which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly authorized executed and delivered effective as of this ___day of __________ 2012.

Exhibit A
Syndication Integration Guide

Attached.

Exhibit B
Recipient Advertising and Third Party Display Sites

Recipient operates the web site _________________________ which is a real estate site that provides information about homes for sale, apartments for rent, neighborhood insights, and real estate markets and trends.

Other third party display sites which the Recipient provides services to include:

1. ______________________________
2. ______________________________
3. ______________________________
4. ______________________________
5. ______________________________
6. ______________________________

An example of how the Recipient’s advertising has been implemented can be seen at:

http:://______________________________________________________________

Exhibit C

Fees

Not Applicable.

Exhibit D

Marketing Requirements

1. Point2 Requirements.  Point2 shall perform the following marketing task:
2. Point2 shall add to all Point2 Syndication Accounts the logo and marketing description as provided by Recipient.
3. Point2 shall make available to Recipient additional marketing opportunities as they become available.

1. Recipient Requirements.  The Recipient grants Point2 the nonexclusive right to use Recipient’s logo(s) and trademarks on Point2’s (i) website, (ii) syndication control panel, (iii) scorecard, and (iv) in promotional and marketing materials.  In order to properly represent the brand of the Recipient, Recipient shall provide Point2 with the following information:
2. Recipient Image Print – Highest possible resolution or vector logo graphic available as well as any information regarding the use of the logo as identified by Recipient.  Preferred file formats for Print logo include:
   1. Adobe Illustrator/Macromedia Freehand
   2. Print-resolution (300dpi) TIFF, PNG, BMP
   3. Recipient Image Web – Low resolution image able to fit within the specific measurements of 120 pixels wide, 60 pixels deep, 72 pixels (dots) per inch, transparent GIF.
   4. Recipient shall provide a short description (approximately 260 characters including punctuation and spaces) to best describe its service offering to real estate professionals.  This description will be used to encourage real estate professionals to utilize the advertising services of the Recipient.  Point2 reserves the right to edit the description so as to maintain its appropriateness for display.
   5. Title of Organization – The title is used to promote the business of the Recipient.  The title will be displayed in order to promote the Recipient’s services to Content Sources.