Space Law 2024

Last Updated July 11, 2024

Switzerland

Law and Practice

Authors



MLL Legal is one of the most reputable international law firms in Switzerland. The firm’s experienced and dynamic lawyers offer innovative and solution-focused services. With offices in Zurich, Geneva, Zug and Lausanne, MLL Legal is present in the key Swiss economic centres. The firm has one of the strongest and largest IP/ICT and digital teams in Switzerland, bringing together some of the most reputed experts in all legal aspects related to traditional ICT topics as well as new technologies. Its strong practice in data privacy makes it a first stop for matters concerning digitalisation and new technologies, and both Swiss and international clients – from corporations and banks to private individuals – appreciate the accessibility and involvement of the firm’s partners in representing their interests. MML Legal’s experience in serving clients from across a variety of sectors has given its lawyers a practical understanding of business that ensures delivery of legal advice applicable in a commercial context.

International Law

To date, Switzerland has ratified four out of five UN international treaties related to outer space – in particular, as follows.

The 1967 Outer Space Treaty (formally the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies) has as an overall purpose keeping space peaceful. It includes certain key clauses on:

  • the banning of nuclear weapons in space;
  • preventing any country from claiming sovereignty over any celestial body; and
  • providing that space is to be freely explored and used by all nations for peaceful purposes.

The 1968 Rescue Agreement (formally the Agreement on the Rescue of Astronauts, the Return of Astronauts and the Return of Objects Launched into Outer Space) is an international law instrument aimed at giving further concrete expression to the rights and obligations contained in the 1967 Outer Space Treaty, by obliging countries to take all possible measures to rescue and assist astronauts in distress and to promptly return them to the launching state.

The 1972 Liability Convention (formally the Convention on International Liability for Damage Caused by Space Objects) is another legal instrument further detailing the rights and obligations from the 1967 Outer Treaty, by providing rules on liability matters for damage caused by a launching state’s space objects.

The 1975 Registration Convention (formally the Convention on Registration of Objects Launched into Outer Space) governs the registration by launching States of space objects launched into outer space.

Switzerland is not a signatory of the 1979 Moon Agreement (the Agreement Governing the Activities of States on the Moon and Other Celestial Bodies).

Swiss National Law and Policies

Besides the ratified international treaties mentioned above, Switzerland also strongly supports a national legal framework related to outer space. In that sense, in April 2023 Switzerland’s Federal Council adopted a new Space Policy, which represents an update of the previous 2008 Space Policy. With the updated Space Policy, the Federal Council emphasised its commitment to providing support in positioning Switzerland as an acclaimed country for promoting excellence and innovation. The new Space Policy determines the country’s strategic priorities and corresponding activities in the space industry field.

Further goals of the Federal Council regarding a national legal framework for space activities were also defined in the 2023 Space Policy. One aim is related to Swiss law on space activities, and a draft thereof is the responsibility of the Federal Department of Economic Affairs, Education and Research. The new law on space activities is expected to incorporate the guidelines already included in the above-mentioned ratified UN treaties into national legislation. The first draft of the new law on space activities is currently being prepared, before being submitted for public consultation. With a Federal Act on Space, Switzerland will be able to transpose its international obligations under the four UN outer space treaties that it has ratified into domestic law (in line with the 2023 Space Policy) as well as improve legal certainty in this area for all actors involved.

In this regard, it is also worth mentioning that, on 15 April 2024, Switzerland became the 37th country to sign the Artemis Accords, a political declaration of intent reflecting the signatory states’ common understanding of the principles by which they intend to explore and use the Moon, Mars and other celestial bodies. By signing the Artemis Accords, Switzerland emphasised its interest in closer co-operation with the USA and other signatory countries.

Membership in Relevant Bodies

Switzerland is one of the ten founding members of the European Space Agency (ESA), an independent intergovernmental organisation that develops space infrastructure for Europe that is then deployed and operated by the European Organisation for the Exploitation of Meteorological Satellites (EUMETSAT) or the European Union (EU).

Most of the space projects involving Switzerland are led by the ESA.

Switzerland has been actively involved in the space activities field since its beginning. The fact that Switzerland is a founding member of the ESA, and actively participates therein, enables Swiss industry and research institutions to gain significant competencies in the respective field. As proof of Switzerland’s involvement in the ESA’s programmes, in September 2024 the Federal Assembly of the Swiss Confederation adopted a new Federal Decree granting credits for co-operation in the space sector for the years 2025 to 2028.

Numerous stakeholders are engaged in space-related initiatives in Switzerland. These stakeholders encompass industry associations, interest groups and various other actors participating in a range of space-related programmes, including the following.

  • The Swiss Space Industry Group, which is responsible for:
    1. providing relevant information on the needs of space programmes;
    2. comprehensive overviews of market developments in the Swiss space sector; and
    3. regular exchange of knowledge and contact with the Swiss Space Office, the ESA, research institutions and other key stakeholders.
  • The Society of Swiss Earth Observation Service Providers, which is a platform for the entire value chain in the field of satellite-based Earth observation data, including the procurement, processing, analysis and visualisation of data.
  • The Swiss Institute of Navigation, which is a non-profit association and a member of the European Group of Institutes of Navigation and the International Association of Institutes of Navigation. Its main objectives are:
    1. promoting and developing the art and science of positioning, navigation and timing (PNT);
    2. co-ordinating information from the different disciplines involved in PNT;
    3. enhancing the awareness of institutional and political entities for the importance and criticality of PNT; and
    4. promoting students and young professionals.
  • The Swiss Committee on Space Research, which is responsible for co-ordinating and stimulating space research in Switzerland.
  • More than 450 companies – including start-ups – active in the space industry.
  • Well-known Swiss universities and research institutions, such as:
    1. the Swiss Federal Institutes of Technology of Zurich (ETH Zurich);
    2. the École Polytechnique Fédérale de Lausanne;
    3. the Universities of Bern, Geneva and Zurich;
    4. the International Space Science Institute (ISSI) in Bern;
    5. the Astronomical Observatory of the University of Geneva;
    6. the Swiss Committee on Space Research, part of the Swiss Academy of Sciences; and
    7. many others.

Switzerland supports national activities in the space sector through the following forms of financial contributions:

  • contributions towards multidisciplinary research and innovation projects in the space sector (consortium projects);
  • contributions towards the ISSI in Bern as a research institution of international importance in the space sector, where scientists from all over the world are invited to work together to analyse, compare and interpret their data; and
  • contributions towards the preparation, conducting or post-processing of participation in international space programmes and projects.

Swiss law is based on the civil law system, meaning that enacted or written laws are the primary source of law. As in all other civil law systems, Swiss law is divided into public and private law.

Swiss legislation appears in various forms (the Federal Constitution, laws, ordinances); however, these do not all have the same legal status. Some are considered primary legislation (acts of parliament) while others are considered secondary legislation (ordinances). Also, as Switzerland is a federal state, Swiss legislation is layered hierarchically into federal, cantonal and communal law.

As mentioned in 1.1 The “New Space” and Space Tech Economy, the Swiss Federal Act on Space is currently in the drafting phase. In the absence of a specific Federal Act on Space, the current legal basis for national activities in space are:

  • the Federal Act on the Promotion of Research and Innovation (applicable to research bodies that use federal funding for research and innovation); and
  • the Ordinance on the Promotion of National Activities in the Field of Space (regulates the promotion of national activities in the space sector that enable or facilitate Swiss participation in the ESA’s programmes and projects).

Regarding ratified international treaties and the relationship between international and national law within the Swiss legal system, it should be noted that ratified international treaties (including the four UN treaties relating to the outer space – see again 1.1 The “New Space” and Space Tech Economy) became automatically applicable once ratified, and there is no need for such international treaties to be implemented into national law. However, as international treaties often contain only guidance and principles rather than particular detailed rules, in general there is a need to further implement such principles into national legislation.

Switzerland is not a member of the EU; as such, EU legislation does not inherently apply to Switzerland or to its private entities. However, it is important to consider that, if an EU proposal includes extraterritorial provisions, it could potentially impact on Switzerland and its private actors. Therefore, in the context of the EU legal framework, it is worth noting that EU institutions have announced their intention to adopt an “EU Space Law”. However, for now the exact content and applicability of this new law remain uncertain.

To date, Switzerland has no resolved or ongoing legal cases in the field of space law.

Switzerland invests more than CHF300 million every year in space activities. These funds contribute significantly to Switzerland’s prosperity and security. With its 2023 Space Policy, the Federal Council has reaffirmed its commitment to space activities, and has highlighted new priorities.

Nevertheless, there is no space agency in Switzerland; therefore, the Federal Council decides on Swiss space policy. Such decisions are based on recommendations formulated by the Federal Commission for Space Affairs. The Swiss Space Office, the division in charge of space matters within the State Secretariat for Education, Research and Innovation (SERI), is responsible for preparing and implementing the national space policy, in close co-operation and co-ordination with the ministries and federal offices that perform space-related tasks.

In promoting the so-called National Activities in Space, the Swiss Space Office pursues three objectives, aiming to:

  • strengthen Swiss space stakeholders at universities and non-commercial research institutions outside the university sector;
  • further advance the implementation of Swiss space policy; and
  • prepare these actors optimally for participation in the ESA or other international programmes.

In order to attain these stated objectives, the Swiss Space Office is responsible for the fulfilment of the following specific missions:

  • developing and implementing Switzerland’s national space policy in close co-operation with other departments and offices;
  • co-ordinating within the federal administration the activities carried out in Switzerland for the exploration and use of outer space;
  • developing and implementing complementary national activities for the application of Switzerland’s space policy;
  • serving as a point of contact for industry and users of space applications;
  • serving as a point of contact for scientific institutions (federal institutes of technology, cantonal universities, universities of applied sciences) for space-related questions;
  • representing Swiss interests towards the ESA;
  • assessing the effects of Switzerland’s space policy and making the results available; and
  • providing information on Swiss space activities to various stakeholder groups.

In summary, the framework and principal stakeholders of Swiss space activities encompass international organisations and programmes on one side, and federal administration, industry and research institutions on the other.

To implement the principles of the relevant UN conventions, numerous states have enacted national space legislation; as previously noted, Switzerland is preparing to do the same in the near future. The development of a Swiss national legal framework will have to consider the country’s specificities and needs.

A Swiss space law should cover the launching and operation of space objects – in particular, satellites. The most important aspects are:

  • the authorisation of space activities;
  • the oversight of space activities;
  • liability issues; and
  • the registration of space objects in a national register.       

In the absence of a Swiss national law on space matters, Switzerland adheres to the obligations stipulated in the ratified international treaties – for example, regarding registration matters, to the Convention on Registration of Objects Launched into Outer Space.

The Swiss Telecommunications Act includes a direct mandate for the regulatory body responsible for frequency management (the Federal Office of Communication – OFCOM) to take appropriate measures to ensure efficient and non-interference/free use. Frequencies and other parameters are set out in the relevant radio licence or approval.

OFCOM issues licences and approvals for commissioning radiocommunications equipment and networks (radiocommunications for professional use, maritime radio, aeronautical radio and amateur radio). It represents Switzerland in major specialist organisations at a national and international level. This involves negotiating reciprocal agreements with foreign administrations concerning the use of radio equipment in Switzerland and abroad. OFCOM is involved in the International Telecommunications Union’s (ITU) three activities:

  • the ITU Radiocommunications Sector (ITU-R);
  • the ITU Telecommunications Standardisation Sector (ITU-T); and
  • the ITU Telecommunications Development Sector (ITU-D).

Anyone wishing to use the radiocommunications frequency spectrum must obtain a licence. Use of the frequency spectrum up to 3000 GHz generally requires a licence.

The Swiss Telecommunications Act established a dispute resolution service between customers, telecommunications service providers and value-added service providers, for which OFCOM is responsible.

Switzerland’s role in the launching of space assets includes as both the provider and the facilitator.

Firstly, as a provider, Switzerland has contributed significantly to space exploration by providing technological solutions. The Swiss Centre for Electronics and Microtechnology (CSEM) has become an important stakeholder in the space exploration community by providing highly precise scientific instrumentation for satellites and telescopes.

Secondly, as a facilitator, the country’s respective body grants the required licences.

Please see 1.1 The “New Space” and Space Tech Economy regarding the treaties that Switzerland has ratified.

Note that Switzerland is not a party to the Agreement Governing the Activities of States on the Moon and Other Celestial Bodies (the “Moon Agreement”).

Switzerland has been a member of the UN Committee on the Peaceful Uses of Outer Space since 2007, as well as a member of the Conference on Disarmament. Switzerland plays an active part in the work of multilateral bodies towards arms control and disarmament.

As a member state of the Committee on the Peaceful Uses of Outer Space, Switzerland fully adheres to the Committee’s Space Debris Mitigation Guidelines. Furthermore, it actively participates in the Working Group on Long-term Sustainability for Space Activities (LTSSA) in the framework of the Committee on the Peaceful Uses of Outer Space.

The Federal Constitution requires the Confederation and the cantons to comply with international law. Regarding the relationship between international and national law, please see 2.2 Legal System and Sources of Space Law and Regulation.

In the absence of a Federal Act on Space in Switzerland, general tort law should be applicable. According to the Swiss Code of Obligations, any person who unlawfully causes damage to another, whether wilfully or negligently, is obliged to provide compensation. Therefore, according to Swiss law, a prerequisite for liability is intentional or negligent illegal behaviour as well as resulting (causal) damage.

Furthermore, as mentioned in 1.1 The “New Space” and Space Tech Economy, Switzerland is a party to the Convention on International Liability for Damage Caused by Space Objects (the “Liability Convention”), which stipulates that a launching state shall be absolutely liable to pay compensation for damage caused by its space object on the surface of the Earth or to aircraft flight.

In the absence of a Federal Act on Space in Switzerland, there are no specific rules for space activities, including cybersecurity rules. It remains to be seen whether cybersecurity will be included in the new Swiss Federal Act on Space. However, Switzerland advocates in various forums for the non-proliferation of delivery systems for conventional weapons and weapons of mass destruction.

Finally, in the absence of a Swiss national law on space matters, the country adheres to the obligations stipulated in the ratified international treaties (see 1.1 The “New Space” and Space Tech Economy).

In the absence of a Federal Act on Space, there are no specific rules on non-interference and prevention of harmful interference in Swiss law. However, general principles contained in the ratified UN outer space treaties serve as guidance in this regard (see 1.1 The “New Space” and Space Tech Economy).

Like many other European countries, Switzerland does not launch satellites from its territory. As mentioned previously, in the absence of a specific space law in Switzerland, there are currently no determined general obligations in this regard.

Switzerland does not currently have a Federal Act on Space, though a first draft is in preparation. However, as a party to the 1967 Outer Space Treaty, the country adheres to the principle that the exploration and use of outer space should be carried out for the benefit of all peoples, as well as the principle that outer space (including the Moon and other celestial bodies) not be subject to national appropriation by claims of sovereignty, means of use or occupation, or any other means.

Please see 4.1 Nature of Space Resource Rights.

Please see 3.1 General Rules on Space Activities.

Please see 3.1 General Rules on Space Activities.

On the business side, a certain Swiss start-up company (a spin-off company established by an experienced team of space debris researchers from the Swiss Federal Institute of Technology in Lausanne) launched a project that aims to remove debris from orbit and reduce the risk of collision. The project is supported by the ESA.

Switzerland does not have a specific tax system related to space activities, though the general tax system applies to individuals and companies within the respective industry. However, in accordance with the Swiss tendency to support innovative industry and new technologies (including the space industry), certain tax incentives are applicable within the Swiss tax system for research and development activities.

Please see 6.1 Tax System for Space Activities.

Please see 6.1 Tax System for Space Activities.

There is significant interest in the NewSpace field in Switzerland. Businesses in the space technology industry sector (forming the Swiss Space Industries Group) offer a diverse and competitive range of solutions. Their products are used in ground stations, launch vehicles and satellites, and they supply ESA and NASA programmes as well as those of other agencies. Furthermore, their customer base also includes private investors in the space markets.

Swiss aerospace company RUAG Space is a global market leader when it comes to safely managing the first three minutes after a rocket launch. It provides payload fairings for the European carrier rockets Ariane and Vega, which contributes significantly to the rocket programme for securing autonomous European access to space. Besides being recognised as an industrial centre, Switzerland also plays a significant role as a centre of research and education.

Over the last two years, various significant events have taken place within the Swiss space community:

  • a Japanese mission, launched in September 2023 and related to a revolutionary X-ray detector, was based on the micro-calorimeter, with several components being developed in Switzerland (the XRISM mission);
  • an ESA mission, launched in April 2023 with the goal of exploring three of the large moons of Jupiter, contained three instruments with significant Swiss contributions (the JUICE mission); and
  • an ESA mission, launched in July 2023 with the goal of mapping the dark components of the Universe and helping to understand its evolution, saw Switzerland contributing to one of the two instruments and complex data-processing (Euclid).

Funding for space activities in Switzerland is provided from both the public and private sector. Switzerland invests more than CHF300 million every year in space activities and contributes around CHF150 million per year to the ESA’s budget.

In addition, and as mentioned in 2.1 Characteristics of the Space Industry, in September 2024 the Federal Assembly of the Swiss Confederation adopted a new Federal Decree granting credits for co-operation in the space sector for the years 2025 to 2028. A commitment credit of CHF1.6663 billion was approved to finance participation in ESA programmes.

A key aspect of space financing in the country is the ESA Business Incubation Centre Switzerland, a national programme supported by the ESA and one of the world’s leading universities, ETH Zurich. The programme provides a range of comprehensive support initiatives to entrepreneurs and start-ups for exploiting space systems or technologies, in order to develop their terrestrial businesses or use technology from Earth for applications related to space.

Switzerland also offers several other sources of financing innovative businesses through private funds, such as:

  • accelerator and incubator programmes that provide funding along with mentoring, networking opportunities and business support;
  • angel investors as individuals who invest their private assets into the company in exchange for equity; and
  • venture capital funds, as pooled funds from multiple investors, usually focused on high-value investments into the company in exchange for equity.

The Swiss space industry landscape is built on strong support from both the State and the industry. Switzerland’s space policy delineates a strategic vision for the future, enabling the formulation of a cohesive and effective overall policy. This policy is harmonised with the nation’s key stakeholders in the space sector, and is integrated within the broader international framework.

Moreover, established Swiss universities and research institutions contribute strongly to the Swiss space landscape by co-operating with Swiss space industries through academic and industrial projects with direct use in the space domain.

Finally, the Swiss Federal Act on Space (a draft of which is expected soon) should strengthen the position of Switzerland as an attractive business location for space activities.

Switzerland follows international trends regarding foreign investments. The government is working on the Investment Control Act, which is expected to come into force in 2025 (at the earliest). To protect the Swiss economy, public order and security, and to provide a legal basis for controlling foreign investments, the draft legislation aims to introduce a foreign investment control regime that regulates acquisitions of Swiss companies (having their business in specific critical sectors) by foreign investors.

Under the proposed foreign investment control rules, acquisition of a Swiss company active in a certain critical industry by foreign investors shall be subject to prior approval. Besides the “operating in a critical sector” requirement, for the Investment Control Act to be applicable, the acquirer should also be considered a foreign state-controlled investor.

Switzerland does not have a specific securities system related to space financing, though general sources of financing apply. Subject to the origin of funds, the financing could be determined as external or internal. Of particular interest is external financing, as internal financing does not always seem feasible for start-up companies, which currently form a significant portion of the space industry. External financing, coming from a third party, can be divided between:

  • debt financing (mainly credit, loans or crowdfunding); and
  • equity financing (mainly business angels, venture capital or crowdfunding).
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Law and Practice

Authors



MLL Legal is one of the most reputable international law firms in Switzerland. The firm’s experienced and dynamic lawyers offer innovative and solution-focused services. With offices in Zurich, Geneva, Zug and Lausanne, MLL Legal is present in the key Swiss economic centres. The firm has one of the strongest and largest IP/ICT and digital teams in Switzerland, bringing together some of the most reputed experts in all legal aspects related to traditional ICT topics as well as new technologies. Its strong practice in data privacy makes it a first stop for matters concerning digitalisation and new technologies, and both Swiss and international clients – from corporations and banks to private individuals – appreciate the accessibility and involvement of the firm’s partners in representing their interests. MML Legal’s experience in serving clients from across a variety of sectors has given its lawyers a practical understanding of business that ensures delivery of legal advice applicable in a commercial context.

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