FlightAware has taken prediction-market platform Kalshi to federal court, alleging that Kalshi used its flight-tracking data and trademark without authorization to settle contracts tied to airline cancellations.
The complaint, filed Monday in the U.S. District Court for the Southern District of New York, seeks damages and a court order blocking Kalshi from further using FlightAware’s data and logo.
FlightAware operates a leading global flight-tracking platform. Kalshi launched markets covering national and local flight cancellations on July 14, the same day it filed with the Commodity Futures Trading Commission (CFTC) to register the products as event contracts.
The contracts allow traders to speculate on the proportion of scheduled flights that will be canceled during a particular period.
FlightAware alleges that Kalshi’s use of its information violates contractual restrictions against commercial use. The company said those restrictions applied to data obtained through a paid AeroAPI account opened by a Kalshi employee in 2022.
The dispute followed a cease-and-desist notice from FlightAware. Kalshi rejected the accusations, saying it had neither violated FlightAware’s licensing agreement nor improperly used its trademark. It also argued that references to FlightAware were permissible under nominative fair use principles.
FlightAware said Kalshi later placed a disclaimer on its website stating that FlightAware did not endorse the cancellation markets. However, the flight-tracking company maintains that the disclaimer is insufficient because Kalshi still indicated that FlightAware’s data would be used to establish contract results and determine winning positions.
The complaint also raises concerns about possible aviation safety consequences. FlightAware argues that giving traders a financial interest in flight cancellations could create incentives for individuals to influence whether flights are delayed or canceled.
Kalshi has identified U.S. Department of Transportation flight information as a possible alternative data source for determining contract outcomes, according to FlightAware’s filing.
The lawsuit comes as Kalshi faces broader legal scrutiny over its prediction-market offerings. New York sued the platform last month, accusing it of offering sports and event-based wagering without a state gaming license. Similar disputes involving Kalshi and other prediction-market operators have also emerged in Wisconsin and Nevada.
Unlike those cases, FlightAware’s lawsuit focuses primarily on intellectual-property and data-use questions. It could ultimately determine whether prediction markets can use another company’s proprietary data and trademark to settle contracts without entering into a commercial licensing arrangement.
