NewSpace Tipping the Balance
of Domestic Liability Regimes:
A U.S. Perspective
Nathan A. Johnson
J.D., George Washington University Law School 2014
LL.M., University of Nebraska College of Law 2015 (expected)
NewSpace Affect on Space Development
• “an emerging new segment of
space launch demand”
– FUTRON white paper “Market Characterization:
Launch of Very-Small and Nano Sized Payloads
Enabled by New Launch Vehicles” IAC-10.E6.3.9
Combined 2014 GSO and NGSO Historical Launches and Lunch Forecast
(“2014 Commercial Space Transportation Forecasts,” FAA May 2014)
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National Risk for Space Activities
• Outer Space Treaty, Art. VI
- “international responsibility”
- “authorization and continuing supervision”
• Liability Convention
Question: Does Increased NewSpace Activity
Expose Governments To More Risk?
- Art. II “absolute liability”
- Art. III: fault based
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Domestic Liability Regime: United States
• Launch & Reentry
- Who needs a license?
• US citizen; or
• Launching from the US
- What does a license require?
•
•
•
•
Inspection
Payload Review
Monitoring
Financial Responsibility
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Balance of Risk: Private v. Public
• Financial Responsibility = Risk
Sharing
Should Indemnification
Be Allowed to Expire?
• Tier 1: Insurance (or other
demonstration)
• To cover the MPL to Third-Parties, as
determined by the FAA
• Not to exceed $500 Million (+ $100
Million for Government)
• Tier 2: Government Appropriation,
aka Indemnification
• If claims exceed Tier 1, Congress will
seek to appropriate funds
• Up to an additional approximately $2.8
Billion (in 2015)
*SpaceX
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Government Jurisdiction over Space Activities
- Direct Authorization
• FAA – Launch & Reentry
• FCC – Spectrum
• NOAA – Remote Sensing
- Indirect Authorization
(Payload Review)
• NASA
• Department of Defense
• Department of State
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Case Study: Satellite Internet Constellations
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Case Study: Bigelow Lunar Habitat
*Bigelow Aerospace
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Concerns from Insurance Market
• New Launch Vehicles
• Human Spaceflight
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Conclusion
• Private Companies still investing, • US Government has enough
developing, and seeking
flexibility to support or intervene
regulatory certainty
where they deem risk
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Questions, Criticisms, Contributions:
Nathan.Johnson@huskers.unl.edu
Nathan A. Johnson