Zillow faced a 2015 lawsuit from Rosemont, Illinois-based VHT, the nation's largest professional real estate photography studio. VHT said Zillow's use of its photos violated VHT's copyright.
A federal jury awarded VHT more than $8 million, an amount a judge later cut in half.
Last Friday, however, a three-judge panel of the 9th U.S. Circuit Court of Appeals overturned that award and sent the case back to U.S. District Court in Seattle for further proceedings related to a smaller group of photos.
In a statement Tuesday, Zillow attorney Ian Crosby called it a major win. VHT did not immediately return a message seeking comment.