Abstract
Since the early years of space exploration and development, space has primarily been the domain of sovereign state actors. Governments have funded and facilitated space activities for specific state purposes, including telecommunications, research and development, and defence. Concurrently, a network of international space law treaties and principles was created to regulate the activities of sovereign state actors in space. However, in recent years, there has been an increase in the number of private commercial entities undertaking space activities. A viable and competitive space economy has emerged, much in part to rapid technological advancements and the reduction of financial barriers to entry. As these commercial entities navigate a new domain, they will face new complex risks – both technical and legal. This chapter specifically identifies those legal risks relevant to commercial ventures into space, including regulatory risk and contractual risk with a focus on the laws applicable in Australia and New Zealand.
The views of the authors are the authors’ alone and are intended to provide commentary and general information, and do not represent the views of any organisation. This chapter should not be relied upon as a substitute for professional legal advice or for any other purpose.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
STS-135 (ISS assembly flight ULF7) was the 135th and final mission of the American Space Shuttle program.
- 2.
Since the final Space Shuttle flight in 2011, NASA has purchased access to the Russian Soyuz spacecraft for American crew transportation. In May 2020, NASA announced that negotiations had been finalised with the Russian state space corporation Roscosmos for one seat on a Soyuz mission scheduled for launch in late 2020 at a cost of USD90.25 million. It is expected that this will be the last time NASA purchases access to space as commercial crew launches enter into regular service.
- 3.
As Project Gemini progressed, the NASA budget grew rapidly. NASA’s budget was $966.7 million in 1961, $1.825 billion in 1962, $3.674 billion in 1963, $5.1 billion in 1964, and $5.25 billion in 1965, representing some 5% of the federal budget. NASA’s full-time employees increased from 10,000 in 1960 to more than 34,000 in 1965. Similarly, the number of employees working for NASA contractors increased from 36,500 in 1960 to more than 370,000 in 1965 (Solomon, 2008, p. 17).
- 4.
SpaceX successfully completed the first demonstration in 2012, and the second demonstration in 2020. SpaceX has also provided critical resupply services under a separate ‘Commercial Resupply Services’ contract with NASA.
- 5.
As of December 2020, Rocket Labs had launched 55 satellites into low Earth orbit.
- 6.
The Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, opened for signature Jan. 27, 1967; The Agreement on the Rescue of Astronauts, the Return of Astronauts and the Return of Objects Launched into Outer Space, opened for signature Apr. 22, 1968; The Convention on International Liability for Damage Caused by Space Objects, opened for signature Mar. 29, 1972; The Convention on Registration of Objects Launched into Outer Space, opened for signature Jan. 14, 1975; and The Agreement Governing the Activities of States on the Moon and Other Celestial Bodies, opened for signature Dec. 18, 1979.
- 7.
These nation states are: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Denmark, Finland, France, Germany, Japan, Kazakhstan, the Netherlands, Norway, Philippines, Republic of Korea, the Russian Federation, South Africa, Spain, Sweden, Ukraine, the United Kingdom, and the United States of America.
- 8.
The terminology for such approvals varies across jurisdictions, but are generally referred to as “approvals”, “licences”, “permits” or “authorisations”.
- 9.
The Space Activities Act 1998 is no longer in force.
- 10.
For further examination of the risks associated with space debris, see Chap. 5.
- 11.
Multiple federal agencies regulate the commercial space industry in the United States. The Federal Aviation Administration, the National Oceanic and Atmospheric Administration, the Federal Communications Commission, the Department of Commerce and the Department of State all have particular responsibilities with respect to commercial space activities in the United States.
- 12.
The particular requirements and treatment of contractual indemnities at law will differ between jurisdictions.
References
ACIL Allen Consulting. (2017). Australian space industry capability. https://acilallen.com.au/uploads/files/projects/217/ACILAllen_SpaceIndustryCapability_2017-1530069389.pdf
Agreement Governing the Activities of States on the Moon and Other Celestial Bodies (Moon Agreement) 1979, 1363 UNTS 3.
Agreement on the Rescue of Astronauts, the Return of Astronauts and the Return of Objects Launched into Outer Space (Rescue Agreement) 1968, 672 UNTS 119.
Australian Government Department of Industry, Science, Energy and Resources. (2017). Terms of reference for a review of space industry capability. https://www.industry.gov.au/sites/default/files/terms_of_reference_for_a_review_of_space_industry_capability_0.pdf
Australian Government Department of Industry, Science, Energy and Resources. (2018). Budget 2018 - New opportunities and jobs for Australian industry. https://www.minister.industry.gov.au/ministers/cash/media-releases/budget-2018-new-opportunities-and-jobs-australian-industry
Australian Government Department of Industry, Science, Energy and Resources. (2019). Advancing space: Australian civil space strategy 2019–2028. https://www.industry.gov.au/data-and-publications/australian-civil-space-strategy-2019-2028
Avveduto, R. (2019). Past, present and future of intellectual property in space: Old answers to new questions. Washing International Law Journal, 29(1), 203–246.
Bauman, I. (2016). The use of service level agreements in space projects. In I. Bauman & L. J. Smith (Eds.), Contracting for space: Contract practice in the European space sector (pp. 303–318). Taylor & Francis Group.
Bauman, I., & Smith, L. J. (Eds.). (2016). Contracting for space: Contract practice in the European space sector. Taylor & Francis Group.
Bilstein, R. E. (1989). Orders of magnitude: A history of the NACA and NASA, 1915–1900. National Aeronautics and Space Administration Office of Management.
Brown, T. (2011). The American and Soviet Cold War space programs. Comparative Strategy, 30(2), 177–185. https://doi.org/10.1080/01495933.2011.561736
Bush, G. W. (2004). Executive order: President’s commission on implementation of United States space exploration policy. https://georgewbush-whitehouse.archives.gov/news/releases/2004/01/20040130-7.html
Carminati, G. (2014). French national space legislation. Houston Journal of International Law, 36(1), 1–18.
Cheng, B. (1997). Studies in international space law. Oxford University Press.
Convention Establishing the World Intellectual Property Organization 1979.
Convention on International Liability for Damage Caused by Space Objects (Liability Convention) 1972, 961 UNTS 187.
Deloitte Access Economics. (2019). New Zealand space economy: Its value, scope and structure. https://www.beehive.govt.nz/sites/default/files/2019-11/Deloitte%20NZ%20Space%20Economy%20Report.pdf
Dempsey, P. S. (2016). National laws governing commercial space activities: Legislation, regulation and enforcement. Northwestern Journal of International Law and Business, 36(1), 1–44.
De Zwart, M. (2019). South Australia’s role in the space race: Then and now. Adelaide Law Review, 40, 63–73.
Diederiks-Verschoor, I. H. P., & Kopal, V. (2008). An introduction to space law. Kluwer Law International.
Dreier, C. (2020, May 19). NASA’s Commercial Crew Program is a fantastic deal. The Planetary Society. https://www.planetary.org/articles/nasas-commercial-crew-is-a-great-deal-for-the-agency
Evans, W. M. (2004). The Canadian space program – Past, present, and future (a history of the development of space policy in Canada). Canadian Aeronautics and Space Journal, 50(1), 19–31.
Freeland, S. (2004). The Australian regulatory regime for space launch activities: Out to launch. In Proceedings of the Forty-Seventh Colloquium on The Law of Outer Space, 4–8 October 2004, Vancouver, Canada. American Institute of Aeronautics and Astronautics.
Gabrynowicz, J. I. (2004). Space law: Its Cold War origins and challenges in the era of globalization. Suffolk University Law Review, 37, 1041–1043.
Gomes, J. R., Devezas, T. C., Belderrain, M. C., Vilela Salgado, M. C., & Lourenco de Melo, F. C. (2013, September 23–27). The road to privatization of space exploration: What is missing? [Conference presentation]. 64th International Astronautical Congress, Beijing, China.
Goswami, N. (2020). India’s space program, ambitions, and activities. Asia Policy, 15(2), 43–49. https://doi.org/10.1353/asp.2020.0022
Griffin, A., Mackenzie, P., Sherborne, A., Sit, H., & Jackson, L. (2019). The law of rules: The use of rules for the advancement of debris mitigation strategies in space activities. In Air Power Development Centre and Australia New Zealand Space Law Interest Group, Project Asteria 2019: Space debris, space traffic management and space sustainability (pp. 75–92). Air Power Development Centre.
Griffin, M. (2005). NASA and the Business of Space [speech made at the 52nd annual conference of the American Astronautical Society, November 2005] in Leadership in space: Selected speeches of NASA Administrator Michael Griffin, May 2005–October 2008, NASA. http://history.nasa.gov/leadership.pdf
Hawkins, N., Pavis, M., Macak, K., & Nasu, H. (2019). Finding Polaris in the future regulation of the UK space industry. The Centre for Science, Culture and the Law at the University of Exeter. http://sculecentre.ex.ac.uk/finding-polaris-in-the-future-regulation-of-the-uk-space-industry/
Hermida, J. (1996). Transponder agreements. Journal of Space Law, 24(1), 36–42.
Hertzfeld, H. R., & von der Dunk, F. G. (2005). Bringing space law into the commercial world: Property rights without sovereignty. Chicago Journal of International Law, 6(1), 81–99.
Huth, O., & Roelandt, R. (2016). Specific aspects and characteristics of satellite capacity agreements in the satellite communications business. In I. Bauman & L. J. Smith (Eds.), Contracting for space: Contract practice in the European space sector (pp. 393–400). Taylor & Francis Group.
IBIS World. (2018). Satellite communications and astronauts in Australia. https://www.ibisworld.com/au/industry/satellite-communications-astronautics/5545/
International Bureau of the World Intellectual Property Organization. (2004). Intellectual property and space activities. https://www.wipo.int/export/sites/www/patent-law/en/developments/pdf/ip_space.pdf
Jones, T., & Macken, T. (2019). Australia. In J. Wheeler (Ed.), The space law review (pp. 21–35). Law Business Research.
Koenigsmann, H. (2018). Statement of Dr. Hans Koenigsmann Vice President, Build and Flight Reliability Space Exploration Technologies Corp. (SpaceX) before the Committee on Science, Space, & Technology Subcommittee on Space, United States House of Representatives, January 17, 2018. https://science.house.gov/hearings/an-update-on-nasa-commercial-crew-systems-development
Koman, R. G. (1994). Man on the Moon: The U.S. space program as a Cold War manoeuvre. OAH Magazine of History, 8(2), 42–50. https://doi.org/10.1093/maghis/8.2.42
KPMG. (2020, May). 30 voices on 2030: The future of space. https://home.kpmg/au/en/home/insights/2020/05/30-voices-on-2030-future-of-space.html
Laisne, M. R. (2013). Space entrepreneurs: Business strategy, risk, law and policy in the final frontier. John Marshall Law Review, 46(4), 1039–1054.
Launius, R. D. (1994). NASA: A history of the U.S. civil space program. Krieger Publishing.
Law, J. (Ed.). (2018). A dictionary of law. Oxford University Press.
Lawler, D. (2020). Commercial space law: Launch and operation of spacecraft. Bulletin (Law Society of South Australia), 42(2), 22–23.
Lisk, J., & de Zwart, M. (2019). Watch this space: The development of commercial space law in Australia and New Zealand. Federal Law Review, 47(3), 444–468.
Mann, T. (Ed.). (2017). Australian law dictionary. Oxford University Press.
Meyers, G. (2006). Intellectual property resources in and for space: The practitioner’s experience. The Journal of Space Law, 32, 385–420.
Millard, D. (2005). An overview of United Kingdom space activity 1957–1987. ESA Publications.
Mitchell, R. (2018). Into the final frontier: The expanse of space commercialization. Missouri Law Review, 83(2), 429–454.
Montpert, P. (2016). Space insurance. In I. Bauman & L. J. Smith (Eds.), Contracting for space: Contract practice in the European space sector (pp. 283–290). Taylor & Francis Group.
Morgan Stanley Research. (2020, July 24). Space: Investing the final frontier. https://www.morganstanley.com/ideas/investing-in-space
National Aeronautics and Space Administration (NASA). (2011). Falcon 9 launch vehicle NAFCOM cost estimates. https://www.nasa.gov/pdf/586023main_8-3-11_NAFCOM.pdf
Nicholson, G. (2002). The common heritage of mankind and mining: An analysis of the law as to the high seas, outer space, the Antarctic and world heritage. New Zealand Journal of Environmental Law, 6, 177–198.
Nixon, R. M. (1970). Statement about the Future of the United States Space Program, 7 March 1970. In Public papers of Richard M. Nixon 1970. U.S. Government Printing Office.
Organisation for Economic Cooperation and Development (OECD). (2012). OECD handbook on measuring the space economy. OECD Publishing.
Organisation for Economic Cooperation and Development (OECD). (2019). The space economy in figures: How space contributes to the global economy. OECD Publishing.
Pant, H. V., & Gopalaswamy, B. (2008). India’s emerging profile in space. Royal United Services Institute for Defence Studies, 153(5), 66–71. https://doi.org/10.1080/03071840802521952
President’s Commission on Implementation of United States Space Exploration Policy. (2004). A journey to inspire, innovate, and discovery. https://www.nasa.gov/pdf/60736main_M2M_report_small.pdf
Piantadosi, C. (2013). Mankind beyond earth: The history, science, and future of human space exploration. Columbia University Press.
Ravillon, L. (2016). Typology of contracts in the space sector. In I. Bauman & L. J. Smith (Eds.), Contracting for space: Contract practice in the European space sector (pp. 161–168). Taylor & Francis Group.
Regan, R. (1984). Statement on signing the Commercial Space Launch Act. https://www.reaganlibrary.gov/archives/speech/statement-signing-commercial-space-launch-act
Rodriguez, R. M. (2015). The space program of the People’s Republic of China. Lulu Press.
Satellite Industry Association (SIA). (2020, June) State of the satellite industry report. https://sia.org/news-resources/state-of-the-satellite-industry-report
Scharlach, I. (2016). Performance and warranty articles in space industry contracts. In I. Bauman & L. J. Smith (Eds.), Contracting for space: Contract practice in the European space sector (pp. 257–266). Taylor & Francis Group.
See, E. (2017). Commercialization of space activities: The laws and implications. Journal of Air Law and Commerce, 82(1), 145–168.
Solomon, L. D. (2008). The privatisation of space exploration: Business, technology, law and policy. Transaction Publishers.
SpaceX. (2011). Why the US can beat China: The facts about SpaceX costs. https://web.archive.org/web/20130328121051/http:/www.spacex.com/usa.php
Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, Including the Moon and Other Celestial Bodies (Outer Space Treaty) 1967, 610 UNTS 205.
United Nations Committee on the Peaceful Uses of Outer Space (UNCOPUOS). (2012, April 10). Report of the Legal Subcommittee on its fifty-first session, held in Vienna from 19 to 30 March 2012. UN Doc. A/AC.105/1003/.
United Nations General Assembly (UNGA). (2004, December 10). Application of the concept of the “launching State”. A/RES/59/115.
Valnia, A., Burt, J., Pham, T., & Ganel, O. (2019, April 14–18). The role of smallsats in scientific exploration and commercialization of space [Conference presentation paper]. Micro- and Nanotechnology Sensors, Systems, and Applications XI, Maryland, United States.
Von der Dunk, F.G., (1994). Commercial space activities: An inventory of liability – an inventory of problems. In Proceedings of the Forty-Seventh Colloquium on the Law of Outer Space. American Institute of Aeronautics and Astronautics.
Von der Dunk, F. G. (2018). Billion-dollar questions? Legal aspects of commercial space activities. Uniform Law Review, 23, 418–446. https://doi.org/10.1093/ulr/uny022
Von der Dunk, F. G., & Tronchetti, F. (Eds.). (2015). Handbook of space law. Edward Elgar Publishing.
Wheeler, J. (Ed.). (2019). The space law review. Law Business Research.
Wtize, A. (2020, May 26). SpaceX to launch astronauts — And a new era of private human spaceflight. Nature. https://www.nature.com/articles/d41586-020-01554-8
Yotsumoto, H., & Ishikawa, D. (2019). Japan. In J. Wheeler (Ed.), The space law review (pp. 47–56). Law Business Research.
Zapata, E. (2017, September 12–14). An assessment of cost improvements in the NASA COTS - CRS program and implications for future NASA missions. [Conference presentation paper]. AIAA Space 2017 Conference, Orlando, Florida, United States. https://ntrs.nasa.gov/citations/20170008895
Zhao, Y. (2017). Intellectual property protection in outer space: Reconciling territoriality of intellectual property with non-territoriality in outer space. Queen Mary Journal of Intellectual Property, 7(2), 137–155. https://doi.org/10.4337/qmjip.2017.02.01
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Sherborne, A.K.E. (2022). The Commercialisation of Space: An Overview of Legal Risks and Considerations. In: Pozza, M.A., Dennerley, J.A. (eds) Risk Management in Outer Space Activities. Space Law and Policy. Springer, Singapore. https://doi.org/10.1007/978-981-16-4756-7_2
Download citation
DOI: https://doi.org/10.1007/978-981-16-4756-7_2
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-16-4755-0
Online ISBN: 978-981-16-4756-7
eBook Packages: Law and CriminologyLaw and Criminology (R0)