International Treaties and Conventions

The UK is a signatory to four United Nations-sponsored space treaties:

• the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies 1967 (OST);
• the Agreement on the Rescue of Astronauts, the Return of Astronauts and the Return of Objects Launched into Outer Space 1968 (Rescue Agreement);
• the Convention on International Liability for Damage Caused by Space Objects 1972 (Liability Convention); and
• the Convention on Registration of Objects Launched into Outer Space 1975 (Registration Convention).

The UK is not a signatory to the Agreement Governing the Activities of States on the Moon and Other Celestial Bodies 1979 (Moon Agreement). It is, however, a founding member of the Artemis Accords 2020 (Artemis Accords).

The UK has also been an active member of the International Telecommunications Union (ITU) since 1871 and is a signatory to the Constitution and Convention of the ITU 1992.

UK Domestic Law

The primary legislation governing space activities in the UK and by UK nationals includes:

• The Outer Space Act 1986 (OSA): This applies to space activities carried out by UK nationals outside the UK, including from British Overseas Territories (eg, Bermuda).
• The Space Industry Act 2018 (SIA): This applies to space and sub-orbital activities carried out by UK nationals from within the UK.
• The Air Navigation (Amendment) Order 2021: This applies to certain limited activities carried out within the stratosphere.

This is supported by the following secondary legislation:

• the Space Industry Regulations 2021 (SIR);
• the Spaceflight Activities (Investigation of Spaceflight Accidents) Regulations 2021; and
• the Space Industry (Appeals) Regulations 2021.

The SIR in particular contain specific detailed rules governing the licensing process for space activities carried out from the UK, including spaceflight activities, range control services and spaceport regulation.

The secondary legislation is also supported by guidance published by the UK’s space regulator, the Civil Aviation Authority (CAA). This guidance is set out in “Civil Aviation Publication” (CAP) documents and is intended to help organisations operating within the space industry to navigate the growing regulatory landscape, specifically with reference to the UK licensing requirements.

Upcoming Changes to UK Domestic Law

In 2024, the UK Space Agency (UKSA) undertook a consultation on orbital liabilities, insurance, charging and space sustainability (Liabilities Consultation). This considered, among other things, the need for amendments to the UK’s domestic legislation to help foster the growth of the UK NewSpace industry. 

One recommendation coming out of the Liabilities Consultation was that a mandatory limit should be applied to the indemnities required from space operators as part of the licensing process. This is to assist operators by making insurance more affordable by eliminating the possibility of an operator having unlimited liability for any damage caused by its space activities. A Private Members’ Bill – the Space Industry (Indemnities) Bill – to put this change into effect is on track to become law in the current parliamentary session.

NewSpace in the UK

The UK is home to several regional space “clusters”, which serve as hubs for NewSpace enterprises. The most prominent of these is located at the Harwell Science and Innovation Campus in Oxfordshire. This site hosts the headquarters of the UKSA, the European Space Agency’s European Centre for Space Applications and Telecommunications (ECSAT), and over 100 NewSpace companies employing more than 1,000 professionals.

The UK’s NewSpace ecosystem is diverse, encompassing major multinational corporations such as Lockheed Martin and Airbus Defence and Space, established industry leaders like Astroscale, and a wide array of innovative start-ups. Many of these emerging companies benefit from the support of UK-based space accelerators and catapult centres, which foster innovation and commercial growth within the sector.

The UK Government’s Approach to NewSpace

The UK government has explicitly acknowledged the strategic importance of the NewSpace sector and the opportunities it presents for national growth and innovation, most recently in the government’s Industrial Strategy published on 23 June 2025. This identified space as one of eight key high-growth sectors for the UK and outlined the steps that the government will take to support the industry, including, among other things, increased investment and efforts to increase the UK’s skill base. Recognising the advantages of the UK’s geographic location, the UK government has articulated a clear ambition: to position the UK as Europe’s leading provider of commercial small satellite launch services by 2030.

To realise this objective, the UKSA is actively collaborating with a range of companies across the country. These efforts focus on the development of spaceports, the advancement of launch-ready space assets and technologies, and the establishment of the necessary supporting infrastructure.

Significant milestones have already been achieved. In January 2023, Virgin Orbit conducted the UK’s first horizontal launch attempt from Spaceport Cornwall in Newquay. Subsequently, in December 2023, the CAA issued the first vertical launch licence in Western Europe to SaxaVord Spaceport in the Shetland Islands, followed by a range control licence in April 2024. The first vertical launch from SaxaVord is anticipated in late 2025.

In parallel, the UKSA continues to support the development of additional launch sites, including those at North Uist and the Snowdonia Aerospace Centre, thereby expanding the UK’s national launch capacity.

The UK government has also undertaken a series of consultations and reviews involving a broad spectrum of stakeholders from across the NewSpace ecosystem (see 2.2 Legal System and Sources of Space Law and Regulation). These engagements have informed key strategic publications, most notably the National Space Strategy – originally published in 2021 and updated in 2023 – and the Space Industrial Plan, released in March 2024 by the Department for Science, Innovation and Technology (DSIT) in partnership with the Ministry of Defence.

Characteristics of the Space Industry

Three of the most notable and recent reviews in this area include:

• the House of Commons Science, Innovation and Technology Committee’s report titled “UK Space Strategy and UK Satellite Infrastructure: Reviewing the Licensing Regime for Launch” (“SITC Report”), published in July 2023;
• the UKSA’s consultation on “Orbital Liabilities, Insurance, Charging and Space Sustainability” (“Liabilities Consultation”), which closed on 5 January 2024; and
• DSIT’s Space Regulatory Review (“Regulatory Review”), released in May 2024.

The SITC Report highlighted several areas for improvement in the UK’s launch licensing regime, particularly in the wake of Virgin Orbit’s unsuccessful horizontal launch attempt in January 2023. Following industry engagement, SITC identified key areas needing attention, including: (i) enhancing transparency and minimising duplication to streamline the licensing process; and (ii) adopting a variable limits model for third-party liability insurance in space operations (see 2.8 Insurance and State Measures on Liability for Damages). Despite these recommendations, the SITC Report concluded that the overall regime was functioning effectively, and that the CAA was adapting to its responsibilities efficiently.

The Liabilities Consultation introduced a range of proposals from the UKSA, with a primary focus on insurance and broader considerations around space sustainability. Like the SITC Report, it proposed a variable liability cap (see 2.8 Insurance and State Measures on Liability for Damages) and addressed the discretionary liability cap under Section 12(2) of the SIA – underscoring the importance of liability issues to the sector. Additional proposals included reducing operator licence fees and advancing sustainability through a proposed “Space Sustainability Roadmap”. The UKSA is currently reviewing the consultation responses.

The Regulatory Review provided a comprehensive overview of the UK’s existing legal and regulatory frameworks, assessing how they could be refined to support the goals of the National Space Strategy and the Space Industrial Plan. It incorporated feedback from across the industry and included the Department for Transport’s review of the first five years of the SIA. While the review found the regime to be broadly effective, it emphasised the need for greater clarity, certainty, and confidence to foster industry growth. To this end, it outlined seven priority regulatory outcomes and 17 supporting recommendations, to be implemented by a cross-government team. It remains to be seen whether these recommendations will lead to legislative changes.

The UK Space Industry Today

The UK has maintained domestic space legislation since 1986, positioning it as one of the most established space sectors globally. In March 2025, a UK government research briefing paper found that in 2021-22, the total UK space industry income was GBP18.9 billion with the industry supporting over 52,000 jobs across the UK. In 2022-23 the UKSA’s expenditure was GBP647 million, representing an increase in expenditure of 75.5% since 2018-19. Notably, the UK ranks second only to the United States in attracting private investment in the global space sector, securing 17% of all such investment in 2022.

See 1.2 NewSpace and the Space Tech Economy on the UK’s ambitions in the NewSpace sector.

The UK comprises three legal jurisdictions: England and Wales, Scotland and Northern Ireland. The jurisdiction of England and Wales is a common law jurisdiction, and the jurisdictions of Scotland and Northern Ireland are hybrid jurisdictions incorporating features of both the common law and civil law traditions.

There is currently negligible reported case law in the UK relating specifically to space law issues. Most space law disputes involving UK entities are currently dealt with via arbitration and are therefore not in the public domain. 

In the UK, the state’s involvement in space activities is primarily through the following five entities:

• Department for Transport (DfT);
• DSIT;
• Foreign and Commonwealth Development Office (FCDO);
• the UKSA; and
• the CAA.

The DfT and DSIT work with the UK’s Minister for Science, Research and Innovation, currently Lord Vallance, to develop the commercial space industry domestically within the UK. By contrast, the FCDO works on an international level to negotiate partnerships with other spacefaring nations and to secure the necessary airspace access rights to facilitate launch from UK territory (see 2.7 Commitment to International Treaties and Multilateral Discussions).

The CAA is the UK’s space regulator and has been since the implementation of the SIA in 2021, which the CAA is responsible for overseeing along with the OSA. The CAA is involved in all space activities carried out by UK nationals, from licensing through to ongoing monitoring, and its number one priority is to secure public safety. The CAA engages with all levels of the industry and regularly publishes useful guidance to assist licence applicants. As the UK space regulator, the CAA is empowered to issue financial penalties for breaches of legislation (ie, the OSA, SIA and relevant subordinate legislation) and licence conditions.

The UKSA is the successor to the British National Space Centre and is responsible for overseeing the UK’s domestic space programme. It also assists the development of the NewSpace industry in the UK, both directly by awarding funding to developing companies and spaceports, and indirectly by supporting the Satellite Applications Catapult. The UKSA is also responsible for the UK’s participation in the European Space Agency (ESA).

The SIA, OSA and ANO

The UK’s regulatory framework for space activities is primarily governed by three instruments:

• the SIA and its associated regulations, which establish the licensing regime for space activities conducted from within the UK;
• the OSA, which governs the licensing of space activities undertaken by UK entities outside the UK; and
• the ANO, which regulates aerospace activities conducted at altitudes up to the stratosphere.

All three regimes are administered by the CAA, which seeks to ensure consistency and alignment across the regulatory approaches applicable under each framework.

Space Activities Carried Out in the UK

Pursuant to Sections 3(1) and 3(6) SIA, it is a criminal offence to conduct space activities or operate a spaceport within the UK without a licence issued by the CAA. Under Section 53 SIA, violations may result in financial penalties or imprisonment.

The definition of “space activity” under Section 1(4) SIA encompasses the launch, procurement of launch, return, or operation of any space object (including aircraft carrying such objects), as well as any activity conducted in outer space.

The CAA is authorised to issue the following types of licences:

• operator licences, which cover:
1. launch operations: launching space objects or launch vehicles from the UK;
2. return operations: re-entry and return of space objects to the UK;
3. orbital operations: operating satellites or spacecraft in outer space from the UK;
• spaceport licences, which authorise the operation of spaceport infrastructure within the UK; and
• range control licences, which govern the provision of range control services for licensed spaceflight activities at designated locations, typically spaceports.

In accordance with Article II of the Registration Convention, the CAA maintains a publicly accessible register of all licences it has issued. This register includes the name of the licensee, the date of issuance, and the terms of the licence, along with the associated oversight and monitoring plan.

The Licensing Process

Entities seeking to conduct space activities must submit licence applications to the CAA, demonstrating compliance with the applicable provisions of the SIR and the Regulator’s Licensing Rules. While no application fee is levied for launch, return, range, or spaceport licences, a fixed fee of £6,500 applies to each orbital operator licence.

To support applicants, the CAA has issued comprehensive guidance through a series of CAP documents, which are regularly updated. The principal reference is CAP 2209: “Applying for a licence under the Space Industry Act 2018”, which provides detailed instructions on completing application forms and supplying the requisite information to facilitate timely assessment.

In evaluating applications, the CAA frequently collaborates with other regulatory bodies. For example, where orbital operations are proposed, co-ordination with the Office of Communications (Ofcom) is required to secure orbital positions and satellite filings. Environmental considerations typically involve consultation with relevant environmental agencies.

Applications must be submitted via the CAA’s online portal, as prescribed by Section 18 SIR. Applicants are required to provide information regarding their legal status, financial and technical capabilities, and the nature of the proposed activities. Additional disclosures are required for individuals occupying “prescribed roles” (eg, “launch director”) in connection with the licensed activities.

Under Section 8 SIA, the CAA may only grant a licence if it is satisfied that the proposed activity:

• does not compromise national security;
• is consistent with the UK’s international obligations;
• is not contrary to the national interest;
• is supported by sufficient financial and technical resources; and
• is to be conducted by individuals and entities deemed “fit and proper”.

These criteria are further elaborated in Chapter 1 SIR.

Applicants for launch, return, and spaceport licences must also submit a comprehensive safety case. This must identify all significant hazards associated with the proposed activities and demonstrate that appropriate mitigation measures have been implemented to reduce risks to a level that is as low as reasonably practicable. A cybersecurity plan is also required as part of this submission.

Although no statutory timeframe is prescribed for the determination of licence applications, the CAA recommends that applications be submitted at least six months in advance of the intended activity. Early engagement with the CAA is encouraged to facilitate tailored guidance throughout the application process.

In the event of a refusal, applicants may appeal the CAA’s decision under Section 60 SIA, in accordance with the procedures set out in Schedule 10 SIA and the Space Industry (Appeals) Regulations 2021. Further guidance on the appeals process, applicable to decisions under both the SIA and OSA, is provided in CAP 2216.

Registration of Space Objects

In accordance with Article II of the Registration Convention, states responsible for launching space objects are required to maintain a national registry and provide relevant information to the United Nations. This obligation is implemented domestically through Section 7 OSA and Section 61 SIA.

For each launch, the CAA must record the launch date, the spaceport used, the nature of the spacecraft, and the intended purpose of the mission. This information is maintained in a publicly accessible register hosted on the CAA’s website. Additionally, the CAA maintains a “supplementary register” for space objects that fall under OSA or SIA licences but for which the UK is not considered the launching state under the Registration Convention.

Licence Conditions and Ongoing Monitoring

Under Section 13(1) SIA, the CAA is empowered to impose such conditions on a licence as it deems appropriate. These may include, for example, requirements to submit periodic reports on the environmental impact of the licensed activities.

Furthermore, Section 26 SIA mandates the CAA to conduct continuous oversight of licensed space activities. This is operationalised through an “oversight and monitoring plan” issued to each licensee, thereby fulfilling the UK’s supervisory obligations under Article VI OST. As part of this oversight, all orbital operators are required to submit annual reports detailing the operational status and condition of their satellites – commonly referred to as a “health check”.

Ofcom

The UK has maintained membership in the International Telecommunication Union (ITU) since 1871 and currently serves on the ITU Council for Region B (Western Europe), with its present term concluding in 2026.

Ofcom is the UK’s national regulator for broadcasting and telecommunications and is responsible for spectrum management. In this capacity, Ofcom performs three key functions:

• issuing licences for satellite earth stations located within the UK under the Wireless Telegraphy Act 2006 (WTA);
• managing satellite filings on behalf of UK-registered entities and submitting these to the ITU; and
• representing the UK in international forums, including the World Radiocommunication Conferences (WRC), held every three to four years.

Operators intending to secure an orbital position and associated spectrum must apply to Ofcom. Prior to notifying the ITU, Ofcom must ensure that the proposed filing complies with the ITU Radio Regulations and its own regulatory requirements. Ofcom also oversees the transfer of satellite filings between operators.

Other Regulators

Ofcom works in close collaboration with other UK government departments and regulatory authorities, notably the CAA. This co-operation is particularly relevant in the context of satellite filings, licensing, and spectrum authorisation for launch operations. Ofcom also contributed to the development of the National Space Strategy and has designated the CAA as the band manager for several radio frequency allocations.

Applicants seeking licences under the OSA or SIA must demonstrate to the CAA that they have secured access to an appropriate spectrum frequency and orbital position. To facilitate this, applicants are required to complete the Radio Frequency/Spectrum Question Set (SRG2229), which captures details such as the relevant satellite filing, the orbital station to be used, and the associated ground stations. This information is shared with Ofcom to ensure a coordinated approach to spectrum and orbital slot management.

Harmful Interference

Under Article 15 ITU Radio Regulations, Ofcom is responsible for investigating and mitigating harmful interference within the UK. Where necessary, Ofcom may direct satellite operators to cease transmissions and, in cases of persistent non-compliance, initiate enforcement proceedings that may result in fines or imprisonment.

The Future

In November 2022, Ofcom published an updated strategy for managing spectrum use by the UK space sector. The strategy acknowledges the rapid expansion of the NewSpace economy and the growing importance of Earth Observation (EO) data in addressing climate change. It outlines Ofcom’s commitment to ensuring sufficient spectrum availability and includes proposals to:

• authorise Earth gateways for emerging spectrum bands; and
• strengthen enforcement powers to prevent harmful interference.

Regulation and Licensing of Launch

See 2.4 Role of the State in the Licensing Process for Space Activities.

Facilitation of Launch

See 2.3 Role of the State in Space Law and Regulations, 7.2 Finance Sources for Space Activities and 7.3 Attracting Investment for Space Activities.

Provision of Launch

The UKSA does not currently possess, nor does it intend to develop, sovereign launch capabilities. As articulated in both the National Space Strategy and the Space Industrial Plan, the UK’s strategic objective is to stimulate the growth of a domestic satellite launch sector by supporting and enabling private sector-led initiatives.

The UK is a signatory to each of the main space treaties, with the exception of the Moon Agreement, and is an active member of the ITU (see 1.1 International Legal and Regulatory Developments). The UK has also entered into a series of bilateral agreements with several other spacefaring nations for the purpose of fostering international co-operation. The UK operates a dualist system, meaning that international treaties entered into by the UK may only take effect domestically through an Act of Parliament.

The UK is an active member of the UN Committee on the Peaceful Uses of Outer Space (COPUOS), and it also participates in the Conference on Disarmament. The UK has used its position within COPUOS to highlight the need for increased space sustainability, including by providing substantial funding for the UN Office for Outer Space Affairs Guidelines for the Long-term Sustainability of Outer Space Activities (“Space Sustainability Guidelines”).

The UK is liable for any damage caused by space activities carried out by UK nationals, whether in outer space or on the surface of the Earth (Articles VI and VII OST, and Articles II and III Liability Convention). This liability is transferred to operators through the licensing process: applicants are required to provide the UK with an indemnity for any such damage caused (Section 10(1) OSA and Section 36(1) SIA). In practice this indemnity is usually capped but there is currently no requirement in law for the CAA to specify such a cap (Section 12(2) OSA and Section 36(3) SIA). The draft Space Industry (Indemnities) Bill is intended to rectify the situation (see 1.1 International Legal and Regulatory Updates).

Current Requirements

Under Section 5(2) OSA and Section 38(1) SIA, the CAA is authorised to impose insurance obligations as a condition of licensing. The CAA currently applies the following indemnity and insurance requirements depending on the nature of the licensed activity:

• Launches Procured Outside the UK (Under the OSA): A standard indemnity of GBP60 million and equivalent third-party liability insurance applies.
• Launches Conducted Within the UK (Under the SIA): Insurance requirements are determined using the CAA’s Modelled Insurance Requirement (MIR) methodology.
• Orbital Operations Conducted From Within the UK (Under the SIA) or From Abroad (Under the OSA):
1. Low-Risk Missions: The insurance requirement may be waived, although the GBP60 million indemnity remains in place.
2. Standard-Risk Missions: A GBP60 million indemnity and matching third-party liability insurance applies.
3. High-Risk Missions: Indemnity and insurance requirements may exceed GBP60 million, subject to CAA assessment.

For orbital operations, third-party liability insurance may be structured on an “any one occurrence” basis or with an aggregate limit, where deemed appropriate by the CAA. In determining the applicable risk category, the CAA considers factors such as the novelty or scale of the mission, the use of unproven technologies, and the potential for third-party liability exposure.

The Modelled Insurance Requirement (MIR) is used to calculate the minimum level of third-party liability insurance required for launches under either the OSA or the SIA. This model is analogous to the Maximum Probable Loss (MPL) approach used in the United States and involves:

• assessing the availability of insurance in the market at the time of application;
• estimating the probability of a launch failure; and
• calculating the maximum potential third-party claims arising from such a failure.

The resulting figure is recorded as the required level of third-party insurance and indemnity on the relevant launch licence.

Future Requirements

Both industry stakeholders and government bodies have acknowledged that the evolution of the UK’s insurance framework is critical to supporting the growth of the NewSpace sector and, particularly, the development of domestic launch capabilities. Insurance has been a central theme in several key policy discussions, including the Liabilities Consultation and the SITC Report (see 2.2 Legal System and Sources of Space Law and Regulation). It also features prominently in the National Space Strategy and the Space Industrial Plan.

Two areas identified for potential reform include the introduction of variable indemnity limits and the alignment of insurance requirements with space sustainability objectives – such as offering reduced insurance and indemnity thresholds for missions that demonstrate sustainable practices. Whether these reforms will lead to legislative change remains uncertain and will depend on the outcome of the ongoing Liabilities Consultation.

As noted in 1.1 The New Space and Space Tech Economy, the Space Industry (Indemnities) Bill is currently progressing through Parliament and is expected to be made law. Although brief in scope, the Bill is intended to enhance legal certainty by mandating that the CAA specify an indemnity limit in all licences issued under the relevant legislation.

Certain “very high altitude” activities already fall within the scope of the UK’s regulatory framework. The SIA applies to “sub-orbital” activities, as well as to “spaceflight activities”, and these are defined broadly to include the launch, operation and return both of spacecraft capable of operating above the stratosphere, and of balloons carrying crew or passengers that are only capable of reaching the stratosphere. As the regulator responsible for overseeing the SIA, the CAA is therefore responsible for regulating such “very high altitude” activities. Through UK SERA (UK Regulation (EU) No 923/2012 (as amended)), the CAA is also responsible for authorising the launch of all high-altitude unmanned meteorological and research balloons (ie, “unmanned free balloons”), and permission from the CAA is required before any such balloon can be launched within the UK.

The CAA will only licence a space activity if it is satisfied that the activity in question:

• is not contrary to the UK’s national interest;
• is consistent with the UK’s international obligations; and
• does not compromise the UK’s national security.

The CAA may impose conditions upon any licence that it grants at its sole discretion.

Like all signatories to the OST, the UK is required to inform other states of any space activity planned by a UK national that may cause harmful interference to space activities undertaken by nationals of the state in question (Article IX OST). 

In line with this obligation, the UK uses domestic regulation to minimise the risk of harmful interference being caused by the space activities carried out by UK nationals:

• Licence applicants must include a safety case with any application to show that their proposed space activity will not cause harmful interference to other space activities (Regulation 29 SIR).
• Launch operators must typically undertake a Launch Collision Avoidance Analysis as a condition of their licence.
• Operators must take reasonable steps to prevent their space activities from interfering with those of anyone else (Regulation 101 SIR).
• Operators must take reasonable steps to prevent or limit major accidents and hazards to other space objects (Regulation 101 SIR).

Guidance on how operators should comply with their regulatory requirements is published by the CAA. The CAA suggests that operators should comply with the Inter-Agency Debris Coordination Committee’s Space Debris Mitigation Guidelines, which include guidance on in-orbit positioning and the creation of orbital debris. 

Licensed operators are subject to responsibilities and obligations imposed by UK domestic law and regulation, as well as through the conditions specified in their licences. These obligations concern the operators’ responsibilities in respect of harmful interference (see 3.2 Principles of Non-interference and Prevention of Harmful Interference), orbital debris (see 5.3 Orbital Debris) and consistency with the UK’s national interest and security priorities (see 3.1 General Rules on Space Activities).

These responsibilities and obligations reflect the UK’s obligations and liabilities under international law. They also reflect the UK’s focus on the issue of space sustainability, which the UK has identified as a critical factor in facilitating the development of the NewSpace industry, specifically with regard to the prevention, reduction and removal of orbital debris.

Domestically, the UKSA has contracted with leading companies to come up with practical solutions to the issue of debris removal (see 5.3 Orbital Debris) and it also funds the Earth Space Sustainability Initiative (ESSI), which aims to champion space sustainability by establishing and encouraging the use of agreed sustainability standards across the industry.

The adoption of such standards is increasingly seen as an important weapon in the arsenal of space sustainability. In May 2025, the British Standards Institution (BSI), the UK’s national standards body, published two new principles intended to promote space sustainability in the UK and further afield, for consultation. The first principle, BSI Flex 1969 v1.0, provides an overarching set of sustainability principles for the entire industry, whereas the second principle, BSI Flex 1979 v1.0, concerns sustainable launch practices specifically. Both principles are sponsored by the UKSA.

The UK is also considering how alternative tools like insurance can be used to promote sustainability by operators (see 5.1 Environmental Protection in Space).

There is currently no legal regime concerning the protection of sites of special interest in space in the UK.

The UK does not operate a separate legal regime in respect of space data.

However, in respect of personal data (which may include personal data derived in space, or personal data from the UK which is processed in space), the UK’s general data protection regime would need to be considered. This is based on the GDPR, which is implemented in the UK through the Data Protection Act 2018 (DPA). In this context, personal data and privacy law is overseen by the Information Commissioner’s Office (ICO).

The DPA regime applies to all UK-based data controllers and processors, and it also has extra-territorial effect, meaning it can also apply to controllers and processors located outside the UK and who process the personal data belonging to individuals in the UK, either when offering goods or services to those individuals, or in the monitoring of the behaviour of those individuals. This means that the DPA may apply to space-based activities to the extent those activities involve such processing of personal data of UK individuals.

The CAA also has a role in enforcing data protection. During the licensing process, the CAA may impose conditions relating to the use of personal data obtained as part of an applicant’s intended space activities (Paragraph 25, Schedule 1, SIA). The CAA encourages operators to share the details of any data breaches with the National Cyber Security Centre (NCSC) and the UKSA. 

The UK does not possess any domestic legislation specifically governing space data spaces. 

Through ESA, the UK participates in the Copernicus EO project. EO data collected as part of this project is freely accessible through the Copernicus Data Space Ecosystem.

Cybersecurity requirements are imposed on operators through the licensing process (see 2.4 Role of the State in the Licensing Process for Space Activities).

Applicants are:

• required to provide a cybersecurity strategy (Section 185(1) SIR), which must be kept up to date and reviewed on an annual basis; and
• expected to follow the guidelines set out in the UKSA’s Cyber Security Toolkit (Toolkit), which identifies potential “hostile actors” and categorises different forms of attack (ranging from the installation or execution of malicious software to service jamming) to help asset owners identify vulnerabilities.

Mitigating supply chain corruption is a high priority, and in the event of any notifiable incident (meaning an event that will have an adverse effect on the systems used for spaceflight operations), licensees are required to notify the CAA within 72 hours (Section 186(1) SIR), and should also report in to the NCSC and the UKSA (Section 4, Toolkit).

All applicants are also expected to adopt a strategy that complies with the standards specified by the NCSC and the Centre for Protection of National Infrastructure (CPNI); and depending on the level of risk posed by the space activity in question, the applicant may also be expected to implement higher cybersecurity standards (including ISO 27001 and ISO 270002 relating to information management security systems).

Environmental Protection: Earth

Applicants for launch, spaceport or operator licences must complete an assessment of environmental effects as part of their application to the CAA (Section 11(2) SIA). The CAA has published guidance for completing the assessment in CAP 2215.

The assessment is intended to identify and address any environmental hazards that might be caused by the proposed space activity. If the CAA is not satisfied with the action proposed by the applicant, it may deny the licence or impose strict licence conditions. If the applicant has already completed an identical application for another agency as part of the licensing process (eg, for the Environment Agency), then this may be used instead of a fresh application (Section 11(4) SIA). 

Spaceports are required to provide designated areas for the storage of hazardous materials (Regulation 158 SIR). All licences issued by the CAA are likely to contain ongoing monitoring conditions requiring the holder to inform the CAA of any material change in environmental conditions at the relevant location. 

On the international stage, the UK continues to champion the cause of dark and quiet skies. In February 2025, the UK delivered a general statement endorsing the conference paper presented by the international Group of Friends for Dark and Quiet Skies for Science and Society at the 62nd session of the Scientific and Technical Subcommittee of COPUOS and confirmed that the UKSA was funding two research projects into the issue.

In November 2024, the UK re-formed the All-Parliamentary Group for Dark Skies, whose aim is to promote awareness of the need for dark skies and encourage the adoption of dark skies-friendly planning policies. The UK does not, however, currently possess any domestic law directly addressing the issue.

Environmental Protection: Space, the Moon and Other Celestial Bodies

Except for requirements concerning the prevention of harmful interference and the creation of orbital debris (see 3.2 Principles of Non-interference and Prevention of Harmful Interference), the UK’s domestic legal and regulatory framework does not currently provide for the protection of the environment beyond the surface of the Earth. The UK does, however, recognise that the issue of space sustainability is of critical importance to the growth and viability of the NewSpace industry. 

The importance of space sustainability was explicitly acknowledged by the UK government in the Space Industrial Strategy published in March 2024, as well as in the Liabilities Consultation. The Liabilities Consultation contained specific proposals to tie the insurance required by space operators to the level of sustainability of their proposed activity. The sustainability of the proposed activity would in turn be judged by the operator’s compliance with various space sustainability best practices to be determined by the UK government. In this way, the adoption of more sustainable practices would be financially incentivised for operators. The Liabilities Consultation closed in January 2024 and a response is awaited from the UK government.

The UK is committed to the global adoption of space sustainability practices. It remains an active member of COPUOS and has dedicated funding to boost awareness and, ultimately, the implementation of the Space Sustainability Guidelines (see 2.7 Commitment to International Treaties and Multilateral Discussions). In 2023, King Charles III announced a new global framework, the Astra Carta, for developing sustainable space activities and increasing the viability of in-orbit manufacturing and servicing to boost the durability of satellites in LEO.

The UK’s current legal framework does not include specific legislation addressing climate change in the context of space activities. However, the Environment Act 2021 sets legally binding carbon budgets and a regulatory framework for achieving “Biodiversity Net Gain”. It is recognised that the ability to monitor and measure change in land use and environmental conditions efficiently at scale in the UK can only be achieved with accurate and reliable EO satellite data. Such data increasingly needs to be amalgamated with other geo-spatial and ground-based datasets to provide meaningful and reliable information that ultimately underpins environmental finance credit trading mechanisms.

The UK government acknowledges the essential role that space can play in tackling climate change targets – particularly through EO technologies – and actively supports the development of this sector.

As a member of the ESA, the UK has been a strong advocate for the TRUTHS climate and calibration satellite mission, which aims to deliver the most precise climate data available.

Domestically, the UKSA has invested heavily in helping NewSpace companies design and develop innovative EO technologies. Under the UK’s Space Industrial Plan, EO has been identified as a key growth area with strong potential for private sector investment.

Most recently, the UKSA committed GBP15 million to support the production of satellites and space-based instruments designed to enhance the collection of global climate data. The Space Industrial Plan also includes a pledge to launch a new UK-based EO data hub by April 2025.

Additionally, the UKSA chairs Space4Climate, a UK-based initiative that brings together experts from industry, academia, and government to advance space and satellite technologies aimed at addressing climate change. Space4Climate’s efforts are also primarily focused on EO.

The UK is potentially liable for any damage caused by orbital debris (Article VII OST and Article III Liability Convention). Although the UK passes this liability onto operators through the terms of any licences for space activities issued by the CAA, it does not possess any laws specifically designed to address the issue of orbital debris.

The UK does, however, recognise the importance of this issue, which it identifies as being an integral part of the wider concept of space sustainability. The UK is involved in efforts to boost space sustainability at the highest levels, as is demonstrated by the publication of the Astra Carta in 2023 and by initiatives like the ESSI, which is funded by the UKSA (see 3.3 Operator’s Responsibilities).

As part of the Liabilities Consultation, the UKSA recognised that insurance might be a useful tool to help achieve better sustainability, with one of the proposals considered being a proposal to link lower insurance requirements for operators that are able to demonstrate that their activities are more sustainable, including by being less likely to generate orbital debris (eg, by planning the de-orbit of the space object in question even prior to launch).

Through the UKSA, the UK is also funding efforts to address the problem. As of June 2025, the UKSA has awarded multi-million-pound contracts to two companies, ClearSpace and Astroscale, to develop active debris removal systems for use in de-orbiting non-operational UK-registered satellites in LEO. The two missions (ClearSpace-1 and Project COSMIC respectively) are currently progressing with the intention being to remove the satellites from orbit by 2026. 

The UK offers a modern and sophisticated tax framework designed to support innovation-driven businesses, including those operating within the space sector. A range of targeted incentives is available, such as:

• research and development (R&D) relief: tax relief for qualifying R&D expenditure, encouraging continued investment in innovation;
• patent box regime: a preferential corporation tax rate on profits derived from the commercialisation of qualifying patents and intellectual property rights; and
• capital allowances: a generous regime allowing up to 100% deductions against taxable profits for capital investment in eligible plant and machinery.

More broadly, the UK maintains a competitive tax environment for international investors. Key features include the absence of withholding tax on dividends and an extensive network of double taxation treaties. These treaties, along with other exemptions, often enable the reduction or elimination of withholding taxes on interest and royalty payments.

See 6.1 Tax System for Space Activities.

See 6.1 Tax System for Space Activities.

Development of NewSpace

As explained in 2.1 Characteristics of the Space Industry, NewSpace is a rapidly growing industry in the UK and its development has been recognised as a priority by the UK government.

Venture Capital

Since 2015, the UK has attracted significant venture capital investment in the space sector, with nine of the largest VC firms active in the country having backed space-related ventures. Among them is the Seraphim Space Group, one of the world’s leading space-focused venture capital funds, headquartered in the UK. To date, Seraphim has raised over GBP250 million in investment. Its inaugural fund launched in 2017, followed by a second fund – estimated at over GBP70 million – launched in April 2024. In addition to its investment activities, Seraphim also runs its own accelerator programme to support emerging space start-ups.

UK Government

In pursuit of its ambitious growth strategy for NewSpace, the UK government has itself directly invested in the NewSpace industry. In January 2025, Orbex announced that it had received GBP20 million of direct investment as part of its Series D fundraising round. Through this “first-of-its-kind” investment, the UK government has said that it is “not only helping the country to become a leading destination for small satellite launches in Europe but bringing highly skilled jobs and investment to communities and organisations across the UK”.

Spin-offs

For decades, UK universities have been actively launching space-related spin-off companies, leveraging their research and expertise to commercialise technologies and innovations. Prominent examples include the University of Leicester’s Perpetual Atomics, which aims to revolutionise space nuclear technology, and STAR-Dundee, formed at the University of Dundee in 2002, which is focused on spacecraft on-board data handling and processing technology. 

Private Funding

The UK’s NewSpace sector has seen growing engagement from venture capital funds, offering substantial sources of private finance for companies willing to exchange equity for investment. As highlighted in 7.1 Impact of NewSpace, the Seraphim Space Group – widely regarded as the world’s leading space-focused venture capital fund – has been active in the UK since 2017.

Despite this progress, the UK government has acknowledged a persistent funding gap for NewSpace companies. To address this, it is working to connect potential investors with viable opportunities in the sector. One key initiative is the UKSA’s “Unlocking Space for Investment” programme, which targets pre-seed and seed funding rounds. The programme provides tailored support to both investors (via the “Investor Pathway”) and space businesses (via the “Business Pathway”).

Additionally, the DSIT has proposed a new private investment framework for space as part of the Space Industrial Plan. This framework is intended to help the UK government identify priority areas within the NewSpace sector and guide private capital toward those most in need of investment.

Public Funding

Public funding remains an important source of finance for NewSpace in the UK. This was expressly recognised by the SITC Report, which identified that the provision of public funding is vital to the successful development of the UK’s launch facilities.

As mentioned in 7.1 Impact of NewSpace, the UK government provided GBP20 million of funding in NewSpace company, Orbex, in a first-of-its-kind investment. We can expect to see further direct investment of public money into the NewSpace industry as the sector continues to grow. 

The UKSA has a range of funding opportunities for NewSpace businesses. The UKSA has launched the second phase of its “Unlocking Space for Business” programme. This programme is seeking to drive long-term adoption of space solutions across commercial end-user businesses operating in the financial services and transport and logistics sectors in the UK.

The UK Innovation and Science Seed Fund (UKI2S) is a publicly backed fund investing in businesses (including NewSpace businesses) with high growth potential at the earliest stages (pre-seed and seed).

Another key source of public funding for the UK’s space clusters is the UKSA’s Space Clusters Infrastructure Fund (SCIF). In March 2024, the SCIF announced a further six projects had been awarded funding, with a total of over GBP47 million in grants having been awarded to date. The UK government’s commitment to the development of space clusters, including providing them with public financing, was re-confirmed in the Space Industrial Plan. In this, the UK government stated its intention to prioritise support for the most focused clusters and to create a united nationwide network that would facilitate effective collaboration between the clusters.

As noted in 7.2 Finance Sources for Space Activities, the UK government has launched the “Unlocking Space for Investment” programme and is planning to implement a new private investment framework for the space industry by introducing the Business and Investor Pathways. Both initiatives are designed to increase private investor awareness and understanding of investment opportunities.

The Business Pathway offers tailored content and focused interventions to support space sector businesses to get investor-ready. The Investor Pathway is dedicated to supporting private investors seeking to capitalise on the developing UK space sector and leverage existing government investment.

The UK is home to several catapult and accelerator programmes that are aimed at assisting NewSpace start-ups in establishing their businesses, and which may in turn provide attractive investment opportunities for investors. In the private sector, the Seraphim Space Group has established a successful accelerator that is focused specifically on space technology start-ups located in the UK and which supports between 16 and 20 new businesses a year.

Satellite Applications Catapult exists to grow the UK space sector and, as satellite applications become increasingly fundamental to many sectors, to grow the UK economy. Catapult brings together suppliers and end users in sectors such as financial services, communications and agriculture, and supports businesses in the satellites sector directly with access to facilities, technical experts and help with starting, commercialising and scaling up their companies.

In the public sector, the UKSA Accelerator operates to help NewSpace start-ups at various stages of their journey.

More broadly, the UK government aims to foster an attractive investment environment by streamlining its regulatory framework and offering greater certainty and clarity to potential investors. This approach extends to areas such as space sustainability – which the UK government intends to actively promote – and the ownership and utilisation of space resources. Following a recent review of the UK’s regulatory landscape, including an assessment of the regime established under the SIA, the UK government is now developing an implementation plan to deliver targeted improvements in these areas.

In the UK, transactions involving certain strategic sectors are governed by the National Security and Investment Act 2021 (NSIA 2021). The regime applies not only to large-scale transactions such as mergers and acquisitions, but also to smaller-scale investments, including the acquisition of minority stakes, voting rights, operational control, and certain categories of assets. The sectors subject to mandatory notification are set out in the accompanying National Security and Investment Act 2021 (Notifiable Acquisition) (Specification of Qualifying Entities) Regulations 2021 (NSIR 2021).

Schedule 14 NSIR 2021 identifies satellite and space technologies – defined in broad terms – as a key sector within the scope of the NSIA 2021. As a result, investments in UK-based space companies may require notification to the Investment Security Unit (ISU), which operates within the Cabinet Office. A mandatory notification is triggered if the transaction results in the acquisition of more than 25%, 50%, or 75% of the voting rights or shares in the target entity, or if it enables the acquirer to pass or block resolutions. Where the transaction involves a smaller stake but may confer “material influence” over the target, or where it involves control over an asset, a voluntary notification may be submitted. In such cases, the ISU may decide to call in the transaction for a full national security assessment.

For the NSIA 2021 to apply, there must be a sufficient nexus to the UK. This means that the target entity must either carry on activities within the UK or supply goods or services to UK persons. Similarly, a target asset must be used in connection with such UK-based activities. In practice, this means that most NewSpace companies established and operating in the UK will fall within the geographical scope of the NSIA 2021 regime.

A range of documentation will be involved in NewSpace fundraisings depending on the type of fundraising and stage of the process.

Typical documents in an investment transaction include:

• pitch deck: a concise presentation outlining the business model, market opportunity, technology, team, and financial projections; it is designed to capture the interest of potential investors;
• business plan: a detailed document that includes the company’s strategy, market analysis, competitive landscape, operational plan, and financial projections'
• ginancial model: detailed financial projections, such as income statements, balance sheets, cash flow statements, and assumptions;
• term sheet: a non-binding agreement outlining the basic terms and conditions under which an investment will be made;
• subscription agreement: a document that investors sign to agree to purchase shares in the company; and
• shareholder agreement: defines the rights and responsibilities of the shareholders following the completion of the fundraising.

This list is not exhaustive, and the specific documentation required will vary depending on the nature of the transaction. Fundraising through alternative routes – such as grants or debt financing – will involve a different set of documents. NewSpace businesses are strongly encouraged to seek legal advice to help them navigate the relevant documentation and ensure compliance throughout the process.

Due diligence is a critical step for investors considering funding NewSpace businesses. Investors will conduct a thorough review of the company to ensure there are no underlying issues that could negatively impact their investment. To help ensure a smooth process, NewSpace companies should proactively prepare and address any potential concerns before seeking funding.

Given that due diligence can be both time-consuming and costly, having key areas of the business in good order benefits all parties involved.

NewSpace companies should pay particular attention to the following areas during due diligence:

• intellectual property: verify that all IP rights are secured and are owned by the company, rather than the founders;
• contracts: ensure that the company has written contracts with key suppliers and customers;
• employees: ensure that the company is complying with employment laws and has written contracts with its employees;
• data protection: ensure that the company has proper data protection policies in place for its processing of personal data; and
• licenses and consents: verify all necessary business licences and ensure regulatory approvals are current.

A liquidity event typically refers to a scenario where founders and early-stage investors, such as venture capital firms, convert their equity into cash. The most common types of liquidity events for private companies include initial public offerings (IPOs), mergers and acquisitions (M&A), and secondary share transactions.

An IPO occurs when a private company offers newly issued shares to institutional and retail investors through a public stock exchange. This process is complex and time-consuming, often taking 18 to 24 months or more to complete.

While often grouped together, mergers and acquisitions are distinct. A merger involves two or more companies combining to form a single entity, sometimes under a new name. An acquisition, on the other hand, is when one company purchases another. Acquisitions typically take one of two forms:

• share sale: where shareholders sell their equity to the acquiring company; and
• asset sale: where the company sells its assets, often followed by dissolution of the original entity.

A secondary transaction involves the sale of shares by existing shareholders to new investors, without the company issuing new shares.

Each type of liquidity event follows a different process, and there is no universal approach. Companies typically work with legal, financial, and strategic advisers to evaluate their options and determine the most suitable structure to meet the founders’ and stakeholders’ objectives.

The UK’s securities markets play a pivotal role in supporting the financing needs of the expanding NewSpace sector.

Like companies in other industries, NewSpace businesses can leverage the UK’s well-established capital markets to raise essential funding from both institutional and retail investors. This capital is often used to support research and development, manufacturing, and operational growth. The two principal equity markets in the UK are the Main Market of the London Stock Exchange (LSE) and the Alternative Investment Market (AIM), each catering to different types of issuers under distinct regulatory frameworks.

The Main Market is typically suited to larger, more mature companies with established revenue streams and financial track records. Listing on this market entails more rigorous regulatory and governance standards and provides access to a broad base of institutional investors and funds. In contrast, AIM is designed for smaller, high-growth companies, including those in emerging sectors such as NewSpace. Its regulatory regime is more flexible, making it attractive to venture capital and high net worth investors, while still maintaining a strong institutional presence.

Both markets offer NewSpace companies the opportunity to go public through an initial public offering (IPO) and to raise further capital through secondary offerings. This continued access to funding is vital for companies in the sector, which often require substantial investment to scale. A notable example is the GBP178.4 million IPO of Seraphim Space Investment Trust plc on the LSE’s Main Market in 2021.

In summer 2025, the UK government will introduce the Private Intermittent Securities and Capital Exchange System (PISCES), a ground-breaking framework for buying and selling private company shares. Private companies will be able to regularly auction their shares, providing an opportunity for shareholders and employees to trade them. For their part, investors will have the opportunity to invest in high-growth private companies that are not usually available until they are publicly listed. This has the potential to be a game changer for the NewSpace sector, providing space businesses with access to a broader set of investors.

The interplay between national, territorial patent law and current international space law is both problematic and complicated.

Typically, a patent (as a type of intellectual property right) is monopolistic in nature and exists within the territorial boundaries of a specific nation state and can only be protected within the territory in which it is registered. The immediate questions here are how to claim national jurisdiction over, and protection of, your nationally registered patent, in outer space.

In the UK, patents are filed in the name of the individual inventor and are protected under national UK patent law; and the UK, unlike the USA, does not seek to extend its national patent laws to inventions made in space, for example by linking to inventions used in, or created on, space objects registered on its registry (maintained pursuant to the Registration Convention).

At the international level, no law, treaty, or convention currently exists for the express protection of a national patent (or any other intellectual property rights (IPR)) in outer space.

Indeed, the fundamental principles contained in Articles I and  II of the OST make it clear that “the exploration and use of outer space” is for the benefit of all mankind, and no country has “a claim of sovereignty, by means of use or occupation” over outer space, including the moon and other celestial bodies, which are “not subject to national appropriation”.

Even the more recent Artemis Accords only refer to “intellectual property” once (Section 2(1)(b)), and require that IPR are addressed in future bilateral agreements (such as how IPR are dealt with in relation to the International Space Station under the “International Space Station Intergovernmental Agreement” signed in 1998 (IGA)).

On the face of it, this makes the protection of patents in space difficult. However, Article VIII of the OST provides that a nation state “shall retain jurisdiction and control” over a space object (including its component parts) carried on in its registry.

At this juncture, on the basis that any patent is likely to subsist within the space object (or any of its component parts), it could be argued that this provides the nexus for permitting national UK monopolistic rights in patents to be protected within the jurisdiction of the UK in outer space (ie, on the space object itself), without undermining the principles of non-appropriation.

The problems arise, however, in relation to the application of the framework to the registration of a space object, which is set out under the Registration Convention and which provides that when a space object is launched, a launching state shall register the space object.

The issue here, of course, is that there could be more than one launching state. Article II(2) of the Registration Convention requires two or more launching states to “jointly determine which one of them shall register the object”. It is this which creates a potential loophole in the application of protecting territorial patents in outer space, for the simple reason that the registry of the state on which the space object is (agreed to be) registered (and which is the state which “shall retain jurisdiction and control” over the space object in outer space pursuant to Article VIII of the OST), may not, in fact, be the state in which the patent is registered and protected here on Earth.

Currently, this can make it potentially difficult for UK patent owners to enforce their rights in space – a position which is compounded by the very practical difficulties of evidencing and enforcing such rights in an appropriate court.

On a practical level, patent owners should, in the first instance, give careful thought and planning as to how best to protect patents terrestrially on Earth and use that to restrict any potential misuse in outer space.

When a NewSpace company is thinking about innovation protection, there are two types of innovation to consider. The first is “terrestrial” innovation (ie, innovation that happens here on Earth), and the second is “extraterrestrial” innovation (ie, innovation that happens in outer space, or on the Moon, on Mars, or any other celestial body).

Here we address the dynamics in relation to protecting “terrestrial” innovations. A typical strategy that a NewSpace company adopts will depend primarily on three fundamental driving forces:

• “what” exactly is the innovation that needs protecting;
• “which” jurisdiction(s) is the innovation predominantly being used in (ie, operationally where are the jurisdictions in which the innovation needs protecting); and
• “where” in the upstream/downstream supply chain ecosystem is the innovation being used (ie, is it a patent being used in a rocket propulsion system by a launch provider, or is it copyright in software being used to analyse downstream EO data).

So, in respect of each innovation and for a NewSpace company to benefit from appropriate levels of protection, the starting point should ideally be to map the answers to these fundamental questions against a commercial risk model, in order to determine the protections needed – as opposed to simply adopting a blanket approach of protecting everything in every launch state or every jurisdiction where the company operates.

Collaboration and co-operation between different stakeholders form part of the growing NewSpace ecosystem. However, there is no overly strong indication that it is occurring more than in other sectors. Further, although the idea of co-ownership or joint ownership of IPR is technically feasible, in reality the costs of getting such arrangements appropriately protected often outweigh the benefits.

At present, in the UK, companies rely on existing national laws to govern the protection of IPR, such as patents, copyright, design rights and trademarks, in space technology.

As set out in 8.1 Territorial Patent Law v International Space Law (in respect of patents), there are no intellectual property enforcement rules under UK law that apply specifically to space activities and/or the use of space objects in space.

Various enforcement mechanisms exist in the UK, including injunctions, damages and destruction of infringing goods. Criminal measures are also available where there has been deliberate infringement. The UK Intellectual Property Office is the body responsible for registration of IPR and plays a key role in the enforcement of such rights.

These rights can only be enforced within the jurisdiction of the UK. To enforce IPR in other countries, the relevant IPR will need to have been granted protection in that jurisdiction, either through registration in each country, or through utilising an international treaty. Enforcing these rights in relation to activities conducted in outer space is extremely difficult, not least because obtaining evidence of any IPR infringement is likely to be difficult.

In the UK, save as catered for on the International Space Station (ISS) under the terms of the IGA (see below), currently there is no established position regarding how any invention in relation to devices and activity manufactured or performed in space would be treated for the purposes of gaining protection under UK patent law.

The UK government’s National Space Strategy in Action does not address this issue directly, and intellectual property is only mentioned briefly in relation to the benefits of innovation clusters and in the context of defence, when the MOD is likely to require full IPR.

The UK is a signatory to the Artemis Accords, which acknowledge that intellectual property is an issue, but set out the requirements for intellectual property (including in relation to patents) to be addressed in future bilateral agreements.

Protection exists on the ISS under Article 21(2) of the IGA, which caters for the scenario that an invention in a UK-designated area of the ISS would be protected in accordance with UK patent law. This, however, provides limited protection, and does not extend beyond the ISS.

It is clear that there is increased awareness at international levels around the need to provide a legal framework and practical guidance on giving enforceable, legal protection to any invention created in space, with the recognition that this is potentially needed to help encourage innovation in the in-orbit space economy.

Commercial contracts in the space industry are often highly confidential and their terms are not publicly available. See 9.3 Space Litigation for why England and Wales is a desirable seat for arbitrations involving space-related commercial contracts.

There are no recorded instances of arbitration being used to resolve a space-related investor-state dispute that involves:

• a UK-based private investor,
• a claim against the UK state; and
• England and Wales (or any other UK jurisdiction) being the arbitration seat.

The English High Court has, however, recently heard a dispute concerning the enforcement of arbitral awards arising in the context of a bilateral investment treaty between India and Mauritius (see 9.3 Space Litigation).

The underlying trend in the space industry is an aversion to litigation amongst the fairly limited number of players in the sector. Naturally, the increase in space-related activities increases the possibility of disputes that may result in litigation. At the time of writing, there are no high-profile space-related cases progressing through the English courts although there are several active contractual and procurement claims in the English High Court relating to satellite technology.

Arbitration as a Preferred Means of Conflict Resolution

Arbitration is seen as the preferred means of conflict resolution for parties who find themselves in a dispute relating to the space sector. The nature of arbitration as a form of dispute resolution provides various benefits including that:

• arbitration provides procedural flexibility for parties, especially those that are located in different jurisdictions;
• specialised industry experts can act as the arbitrators in claims involving highly sophisticated space-related technology and processes; and
• where claims involve highly secretive and/or proprietary materials, there are mechanisms in most tribunals’ rules that allow for strict confidentiality.

Parties to arbitration may, however, ultimately still find themselves before the courts if attempts to enforce their arbitral awards are resisted. In the recent case of CC/Devas (Mauritius) Ltd & Ors v The Republic of India [2025] 964 (Comm), which concerned the enforcement of ICC and UNCITRAL arbitral awards made against India relating to a dispute over a satellite leasing contract in the context of a bilateral investment treaty, the English High Court upheld India’s claim to sovereign immunity, which it found had not been waived by the country’s accession to the New York Convention. This case is currently subject to appeal but it may have serious implications for the enforcement of arbitral awards against sovereign defendants in the UK, which is particularly relevant in the space sector.

Advantages of Choosing England and Wales as an Arbitration Seat

Arbitration in England and Wales has certain advantages over other potential seats including:

• The Arbitration Act 1996 – soon to be modernised by the Arbitration Act 2025 – provides a clear and comprehensive procedural framework for arbitration, based on the UNCITRAL Model Law, and is subject to the supervisory jurisdiction of the courts in England and Wales.
• The London Court of International Arbitration (LCIA) is a leading institution capable of handling the complex and international nature of space-related disputes.
• The UK is a signatory to the New York Convention which facilitates the international enforcement of an arbitration award rendered in England and Wales.

There is limited data currently when it comes to mapping space-related disputes in England and Wales. In 2023, 6% of LCIA arbitrations were from the technology sector and fewer than 1% concerned telecommunications. It is not clear whether any of these disputes concerned the space industry. However, England and Wales could certainly evolve to be an appropriate arbitration seat to host space-related disputes for the reasons set out above.