Space Law: Legal Issues in the Commercialization of Outer Space
- ProBonoLegalBlogs
- Jul 8, 2024
- 7 min read
Updated: Jul 9, 2024
The Author of this Blog Article is Ms. Mansi Maheshwari, a law student pursuing B.A.LL.B, from National Law University, Odisha (NLUO).

Abstract
The enormous attraction of space and current technical developments are making space exploration a possibility. Space law presents hurdles to the commercialization of space, which was formerly dominated by state run institutions and is now pushed by private firms. This blog examines the development of space law, important agreements like; the Outer Space Treaty (1967), and current problems including property rights, the control of space trash, and responsibility for human spaceflight. National laws that emphasize the changing legal environment include the U.S. Commercial Space Launch Competitiveness Act (2015. Sustainable space usage requires effective international collaboration and legal harmonization.
Keywords: Space Law, space commercialization, Outer Space Treaty, space debris
Space Law: Legal Issues in the Commercialization of Outer Space
The vastness of outer space has always fascinated human beings and has captured their
attention. With the recent technical developments, the goal of exploring and using space
resources is starting to come true. Historically the prerogative of state-run space agencies, the
commercialization of space is now being pushed more and more by private enterprises. This
transformation is accompanied by a host of legal challenges and questions, referred to as
space law. In this blog, we seek to delve into and untangle the complexities of space law, its
historical development, fundamental legal tenets, and issues specific to the increasing
privatization of outer space.
THE EVOLUTION OF SPACE LAW:
Early Developments:
Space law began to take form during the mid-20th century when science was seeing lightning- fast advancements and so as the geopolitics. The launch of Sputnik by the Soviet Union in 1957 and the resultant subsequent space missions, highlighted an urgency to develop an elaborate international legal regime to oversee activities in outer space. At the center of it was the role which the United Nations played in formulating and adopting basic treaties. [1]
Key Treaties:
1. The Outer Space Treaty (1967):
The Outer Space Treaty, deemed the "Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies" is a principal component of international space law. It sets forth a number of basic considerations to govern the behaviour of States in exploring and using outer space:
a). Space as a Global Commons: Space shall be a free province for all mankind, implying that outer space is open to the use and exploration beyond earth of every country for peaceful purposes. According to which, space is not available for national appropriation at all.
b) Prohibition of nuclear weapons: The treaty specifically prohibits the placing of nuclear weapons or any other weapon of mass destruction in orbit around earth or at any location within outer space.
c) Peaceful purposes: All the activities in space, including the moon and other celestial bodies, must be conducted for peaceful purposes. Conducting any kind of military manoeuvres in space is not allowed under this treaty.
2. The Rescue Agreement (1968):
This treaty, initially known as the “Agreement on the Rescue of Astronauts, the Return of Astronauts, and the Return of Objects Launched into Outer Space" further expounds upon the principles mentioned in the outer space treaty involving the rescue and return of space objects and astronauts
3. The Liability Convention (1972):
It establishes a mechanism for indemnification and imposes obligation on governments for harm caused by their space objects.
4. The Registration Convention (1976):
It mandates accountability and openness by requiring governments to provide information to the UN about their space objects
5. The Moon Agreement (1984):
This treaty, although less widely adopted emphasizes the peaceful use of the Moon and other celestial bodies as well as the equitable sharing of benefits obtained from their resources. It draws inspiration from the Outer Space pact and applies it to these bodies. [2]
Contemporary Challenges
Although the foundation for space law was established by these accords, new legal issues have emerged as a result of the fast development of space technology and the growing participation of private enterprises. A few state players dominated space operations when the current legal framework was being developed. The terrain has changed dramatically in the modern era, being increasingly varied and diverse.
Legal Challenges In The Commercialization Of Space
1. Property Right's & Resource Utilization:
Property rights and the use of space resources are the two of the most controversial topics in space law. There are concerns over the legal standing of resources taken from celestial planets because the Outer Space Treaty forbids sovereign claims over them by Private companies, especially those mining asteroids, contend that they should have the right to claim ownership of the materials, the mine, much as fishing vessels do with fish they catch in international seas. There is no worldwide agreement on the best way to manage and allocate space resources, hence this interpretation is not shared by all
2. Space Debris & Environmental Protection:
Both manned and robotic operations are seriously threatened by the presence of space junk. Thousands of fragments of abandoned satellites, spent rocket stages, and other junk circle the planet, posing a risk to spacecraft that are in operation. International accords in place, including the Liability Convention, fall short in addressing the problem of space debris. To properly manage and reduce the hazards connected with space debris, new laws and policies are desperately needed. This entails creating standards for appropriate conduct in space and creating technology for the removal of debris
3. Intellectual Property Rights:
Several cutting-edge technologies have emerged as a result of space commerce. It can be difficult to protect intellectual property rights (IPR) in space, specially when there are international missions and partnerships involved.
A broad basis for intellectual property rights (IPR) is provided by international treaties like the Agreement on Trade-Related aspects of intellectual property rights (TRIPS). To meet the particular difficulties of safeguarding innovations and confidential information in the context of space operations, special safeguards are necessary
4. Jurisdiction And Dispute Resolution:
Another complex legal question is jurisdiction in space. According to the terms of Outer Space treaty, items sent to space must stay under the authority and control of the state from where they were launched. But as the role of private organizations grows, concerns about whether national rules apply and how conflicts should be settled surface
Space related problems may be resolved through international arbitration, according to some experts. Organization that has developed specific guidelines for space related issues, like the Permanent Court of Arbitration (PCA), have created a framework for amicably and effectively settling disputes
5. Human Spaceflight and Liability:
Liabilities for mishaps and causalities is a growing concern as commercial spaceflight becomes more widely available. The liability convention does not address the particular requirements of commercial spaceflight, but it does establish a foundation for state liability To fill this vacuum, national authorities have mandated that commercial spaceflight businesses secure liability insurance and releases of claims from spaceflight participants. One such rule is the United States’ Commercial Space Launch Amendments Act. A more thorough international structure is nonetheless required to handle the special dangers and obligations connected to human spaceflight [3]
National Legislation And Policies
United States: The United States has been a pioneer in developing national space legislation. A framework for licensing and regulating commercial space launch operations has been established under the Commercial Space Launch Act of 1984 and its revisions. Furthermore, the US passed the Commercial Space Launch Competitiveness ACT (CSLCA) in 2015, igniting a global controversy by granting its inhabitants the ownership of resources taken from celestial planets.
European Union: The European Union and the European Space Agency have created policies to support the expansion of the space industry. The necessity for a cogent regulatory framework to enhance the competitiveness of European space enterprises is emphasized in the EU’s Space Strategy for Europe. A few EU members, including Luxemburg, have also passed national legislation to encourage the use of space resources Other Countries: Other nations are also creating their own space laws and regulations including China, Russia, Japan, and India. The way that these policies handle matters like responsibility, resource use, and property rights varies greatly, reflecting the various goals and interests of many countries. [4]
Emerging Legal Issues
Space Tourism: There are new legal issues with space tourism, specially when it comes to responsibility, safety and regulatory compliance. To safeguard travelers and guarantee the secure running of space tourism operations, laws must be explicit as soon as private enterprises start to offer commercial spaceflights.
Lunar & Martian Colonization: Many legal issues arise from plans to build human settlements on Mars and the Moon. These cover matters including resource use, property rights, and the management of interplanetary settlements. These issues are not sufficiently addressed by the current legal framework, which makes the creation of new international agreements and laws necessary.
Cybersecurity: Cybersecurity is a major worry as space systems interface with digital technology more and more. In order to address the particular vulnerabilities of space infrastructure, strong regulatory frameworks and international collaboration are needed to protect space assets from cyber attacks.
Space Traffic Management: Effective space traffic management is essential for preventing accidents and ensuring sustainable use of space, given the increasing number of satellites and space missions. The creation of global guidelines and standards for space traffic management is a significant legal and policy difficulty. [5]
Future Direction In Space Law
Strengthening international cooperation: Strong international coordination and collaboration are necessary due to global character of space operation. Addressing new legal issues requires creating new treaties and accords that take into account the changing nature of space operations.
Harmonizing National Legislation: Levelling the playing field for commercial space operations can be achieved via harmonizing national space legislation. This entails lowering regulatory hurdles, encouraging uniformity, and bringing national laws into line with international norms and standards.
Enhancing Legal Education and Research: To build a strong and vibrant subject of space law, funding for legal research and teaching is essential. This entails assisting educational initiatives, promoting multidisciplinary research, and cultivating communication among legal professionals, decision-makers and business partners. [6]
Conclusion
The commercialization of space offers tremendous potential, but there are also substantial legal obstacles to overcomes. Creating an extensive and flexible legal framework is crucial to guaranteeing the peaceful and substantial use of space as mankind expands toward the last frontier. Space law may serve as a cornerstone for the space industry’s sustained expansion and prosperity by tackling concerns including property rights, liability, environmental
protection and cybersecurity The key to managing the complicated legal environment around space will be international cooperation, uniform regulation and a dedication to sustainable practices. The evolution of space law will be a major factor in determining how mankind will travel across space in future.
References:
1. Yun zhao, Space Commercialisation and the Development of Space Law, OXFORD RESEARCH ENCYCLOPEDIAS, PLANETARY SCIENCE.
2. Frans G, Billion-Dollar Questions? Legal Aspects of Commercial Space Activities, 0 OXFORD UNIVERSITY PRESS 1.
3.Inesa Kostenko, Current Problems and Challenges in International Space Law: Legal Aspects, 5 ADVANCE SPACE LAW 48.
4. G, supra note 2.
5. zhao, supra note 1.
6. Kim Rathman, Outer Space Commercialization and Its Ethical Challenges to International Law and Policy, ELSEVIER 135.
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