Bonus TL;DR
- The Federación Mexicana de Fútbol sued Kalshi in New York federal court for using Liga MX trademarks without authorization.
- The dispute tests whether a prediction market’s unauthorized use of sports logos constitutes trademark infringement or nominative fair use.
The Federación Mexicana de Fútbol Asociación has sued Kalshi in federal court in New York, alleging the prediction market operator used Liga MX trademarks and club logos without authorization to promote bets.
The complaint, filed Tuesday in the Southern District of New York and assigned to U.S. District Judge J. Paul Oetken, puts a spotlight on a recurring issue for betting and prediction market operators: how far they can go in using league names, logos and related branding to market event-based products. FMF is seeking an injunction and monetary damages.
According to the complaint, FMF owns a live U.S. trademark registration for Liga MX covering apparel, advertising and educational services. That registration was issued in 2015, according to the source article.
FMF alleges Kalshi created a “false impression of sponsorship” and presented Liga MX “as not just a participant in the verification of the market outcome, but as the source on which the market’s resolution depends.” The federation also says Kalshi kept using the marks after receiving multiple cease-and-desist letters.
Fair-use dispute is likely to be central
The source article says FMF’s general counsel sent a cease-and-desist letter to Kalshi in July demanding that it stop using the Liga MX logo and club logos. Kalshi’s general counsel then responded that the use was lawful under nominative fair use, according to FMF’s complaint.
That defense is likely to be central as the case moves forward. Nominative fair use generally comes up when a company argues it used a trademark only to identify the subject of a product or offering, rather than to imply sponsorship or endorsement.
The article also notes Kalshi has at times used league and team logos in other sports contexts, including the Ryder Cup and the Canadian Football League and its teams, rather than generic names. It says Kalshi has also advertised using well-known sports properties such as the Super Bowl without permission.
Broader branding fight across betting-related companies
The dispute fits a wider pattern of sports-rights holders pushing back on gambling-related use of their intellectual property. After pushback from the NCAA during the last college football season, the article says Kalshi added boilerplate language to most of its markets stating: “Kalshi is not affiliated, associated, authorized, endorsed by or in any way officially connected with the Governing League. All trademarks, logos and brand names are the property of their respective owners.”
The article also points to a separate trademark fight filed in March, when the NCAA sued DraftKings over alleged use of NCAA March Madness-related trademarks in Indiana litigation that is still ongoing.
What comes next in the Kalshi case is a formal response to FMF’s complaint and, potentially, an early court fight over whether Kalshi’s use of Liga MX names and logos is protected fair use or trademark infringement.
Source: As reported by news.google.com.