FlightAware sues Kalshi over unauthorized use of flight data

FlightAware has filed a lawsuit against derivatives exchange Kalshi, accusing the company of using its proprietary flight-tracking data and trademark without permission to settle contracts tied to canceled flights.

The complaint, filed in a U.S. federal court, alleges that Kalshi’s market for flight cancellation bets relied on FlightAware’s real-time and historical flight data, which was accessed and utilized without a license or agreement. FlightAware claims this constitutes unauthorized use of its intellectual property and seeks damages as well as an injunction to prevent further misuse.

Kalshi operates a prediction market platform where users can bet on the likelihood of specific events, including flight cancellations. The lawsuit contends that the company’s contracts were settled using FlightAware’s data, which was integrated into Kalshi’s systems without consent. FlightAware argues that this practice violates its terms of service and infringes on its trademarks.

A spokesperson for Kalshi did not immediately respond to a request for comment. The case highlights growing legal and ethical concerns around the use of proprietary data in financial markets, particularly in prediction and derivatives trading.

FlightAware, which provides real-time and historical flight data to airlines, airports, and other industries, has not disclosed the financial damages it is seeking. The lawsuit underscores the importance of data licensing agreements in an era where real-time information is increasingly commoditized and monetized in financial products.