True Footage Sues Silicon Valley Rival Over Alleged AI Software Cloning

A legal battle is heating up between two real estate tech firms as Austin-based True Footage accuses San Francisco startup Automax AI of cloning its proprietary appraisal software. The lawsuit alleges that the Silicon Valley rival used "vibe coding"—a process of using AI to mimic the look, feel, and logic of an existing product—to create a near-identical copy of True Footage’s platform in record time.

The dispute highlights a growing anxiety in the tech sector regarding how generative AI can be used to reverse-engineer software without traditional access to source code. True Footage claims that its competitor systematically scraped its user interface and workflow patterns to bypass years of research and development. This case could serve as a bellwether for how courts define intellectual property theft in an era where AI can replicate sophisticated digital tools with minimal human intervention.

As the case moves forward, the industry will be watching to see if "vibe coding" becomes a recognized legal term for software infringement. For now, the rift underscores the intensifying competition in the real estate appraisal market, where companies are racing to automate traditional valuation methods. True Footage is seeking damages and an injunction to prevent the further use of the contested technology.

The Real Deal reported on these claims.