FlightAware drops Kalshi lawsuit over a market niche that data shows it never took off

FlightAware drops Kalshi lawsuit over a market niche that data shows it never took off The flight-tracking company voluntarily dismissed, without prejudice and without sharing a motive for its decision. However, the flight cancellation market never took off with Kalshi users.FlightAware dropped its lawsuit against Kalshi over its flight-cancellation market, which drew extremely low volume and interest. (Bao Menglong /Unsplash)FlightAware abruptly withdrew, without prejudice, its one-day-old lawsuit accusing prediction market Kalshi of misusing its flight data and trademark to power flight-cancellation bets.The dismissal leaves open the possibility of refiling and comes amid social media backlash over alleged incentives for malicious flight disruptions and relatively low retail interest in Kalshi’s aviation contracts.The case, which neither company has publicly commented on, had raised a novel question over whether prediction markets can rely on third-party data and trademarks without a commercial agreement, even as Kalshi faces separate regulatory and legal challenges in multiple states.FlightAware voluntarily dismissed its lawsuit accusing prediction markets platform Kalshi of using its flight data and trademark without permission on Tuesday, one day after filing the case in a New York federal court.In its dismissal notice filed in the U.S. District Court for the Southern District of New York, by FlightAware, the world’s largest flight-tracking platform, does not state the reasons why it decided to withdraw the lawsuit. It dismisses the action “without prejudice,” allowing the company to refile its claims.However the motives could be social media backlash combined with very low retail interest in the aviation niche.According to a Fortune article in July, Kalshi decided to pause flight cancellation contracts, after social media users expressed concerns over malicious actors causing flight cancellations to collect payouts. And according to Kalshi data, retail participation in the niche aviation series has been modest. For the U.S. flight cancellation bet currently open until Aug. 14, the data reveals only 31,412 total contracts traded, representing $1,842.48 in aggregate dollar volume and only 1,120 contracts held in open interest. The low liquidity here stands in stark contrast with Kalshi’s $148 billion in volume this year alone, that same data shows.The filing does not state whether the companies reached an agreement or whether Kalshi changed its markets or their settlement source.Kalshi and FlightAware were contacted via email for comment but neither responded immediately.FlightAware had accused Kalshi of using its flight data and a trademark without permission to run bets on airline cancellations. The flight tracking firm was seeking damages and an injunction over contracts that allowed users to trade on the percentage of flights canceled nationally or at specific airports.Kalshi had denied violating FlightAware’s license or infringing its trademark, according to the original complaint. It said its references to FlightAware constituted nominative fair use. The platform had also identified U.S. Department of Transportation flight data as an alternative source for settling the contracts, according to FlightAware’s complaint.12345678910Building the Zcash Machine: Tachyon and Quantum ReadinessBuilding the Zcash Machine: Tachyon and Quantum ReadinessZcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.Why it matters:Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.View Full Report