FlightAware Sues Kalshi Over Unauthorized Use of Flight Data

FlightAware filed a lawsuit against prediction-market operator Kalshi in the U.S. District Court for the Southern District of New York on Monday. The flight-tracking service alleges that Kalshi used its data, trademarks, and branding without authorization to offer wagers on flight cancellations and airline disruptions.

The complaint asserts that Kalshi violated license terms via a fee-based AeroApi account registered by an employee in 2022 and ignored a prior cease-and-desist letter. FlightAware argues that using its company as the primary source for contract settlement could mislead users into believing a partnership exists and creates safety risks by providing financial incentives to disrupt air travel.

Kalshi previously defended its actions by claiming the references to FlightAware constituted "nominative fair use." Although Kalshi later added a disclaimer stating the markets were not endorsed by FlightAware, the plaintiff maintains this does not resolve the unauthorized use of data to determine market winners and losers. FlightAware is seeking a jury trial, unspecified damages, and court orders to stop Kalshi from using its branding and data.