Venturing into space: IP, insurance and other legal issues to have on your radar

Tell me in one minute

The space sector is in the midst of a rapid transformation. The global space economy was valued at over $450 billion by 2022, and some analysts project it could reach $1.8 trillion by 2035. This growth is being fuelled by a wave of innovation, new business models, and record levels of private investment. From satellite constellations and in-orbit servicing to lunar missions and space tourism, what was once science fiction is now commercial reality.

But with opportunity comes complexity. The regulatory environment is highly technical and constantly evolving, with a patchwork of international treaties, national laws, and industry standards to navigate. For start-ups and businesses expanding into the sector for the first time, the legal landscape can be daunting.

We work with clients across the space value chain and have seen that even the most experienced teams encounter a set of legal issues that are uniquely challenging in this sector. One recurring theme is the importance of sequencing: aligning regulatory approvals, funding, and customer and supplier contracts is critical to avoiding costly delays and operational uncertainty. Careful project planning, clear milestone definition (especially in R&D-heavy projects), and proactive engagement with regulators and partners can make all the difference. Below is our quick-fire checklist: think of it as your pre-launch safety check, highlighting the key legal points to consider before you sign a contract or hit the big red "go" button.

Intellectual property and commercialisation – protecting your competitive edge

• Patents and trade secrets — Developed a new technology? Filing a patent can protect your idea and help secure investment, but it also makes your innovation public and may trigger export controls, especially if the technology is sensitive or dual-use. In some cases, keeping your know-how confidential as a trade secret - supported by robust internal controls and NDAs - can be a more strategic choice, particularly where disclosure could limit your commercial options.
  
  If you’re using government funding, check the fine print. Grants and funding programs often include provisions for government access and usage rights in certain circumstances. Make sure you understand how these rights could affect your ability to commercialise or license your IP down the track.

• Data rights — These days, the real value is often in the data your technology collects, not just in the hardware or code. Make sure your contracts clearly define who owns the raw and processed data, who can access it, and whether it can be used for secondary purposes like AI training or benchmarking. Whether you’re sharing a satellite bus, payload, or working with a partner to develop another technology, be explicit about data segregation, access rights, and any restrictions on sharing or commercialising the data with third parties.
• Joint R&D and supply-chain collaboration — Space projects often involve multiple parties. In these circumstances, it is important to map out who owns what IP (both background and project-generated), how improvements are handled, and what happens if a partner exits or becomes insolvent. Also, watch for “IP creep” - some standard supplier contracts can quietly grant broad licences or assignment rights, so review terms carefully to avoid unintentionally giving away valuable IP.

Insurance – managing risk and protecting your investment

• Pre-launch, launch and in-orbit property cover — Space projects are capital intensive and the build, launch and operate lifecycle carries significant risks. Insurance premiums have increased following high-profile satellite losses, and insurers are scrutinising contingency plans, technical due diligence, and operational history more closely. For operators with multiple satellites, fleet or constellation policies may be available but these often require robust risk management processes and detailed reporting of anomalies.
• Third-party liability — If your space asset causes damage (such as through a direct collision or debris), you’ll need appropriate insurance to cover potential third-party claims. Minimum insurance requirements, and who is responsible for meeting them, vary widely across jurisdictions. It is important to understand your policy to ensure it covers your specific needs (and whether any exclusions or sub-limits apply).
• Cyber and AI outage risk — Space insurance policies were traditionally silent on cyber risks, but with the rise of AI-driven autonomy and increased cyber threats, dedicated cyber endorsements are now standard. Make sure your policy addresses risks like hacking, jamming, or loss of control. If you’re financing your project, lenders will typically require their interests to be noted on all relevant insurance policies.

AI, autonomy and product liability – addressing emerging technology risks

• Algorithmic decision-making — If your technology uses autonomous systems, clarify in your contracts who is responsible for decisions made by AI - especially in circumstances where a malfunction or error leads to loss or damage. Ensure your AI is trained on reliable, well-documented data, as regulators are increasingly focused on both the safety and provenance of automated decision-making.
• Ownership of machine-generated IP — If your robot or autonomous system generates new IP while in orbit, who owns it? Most jurisdictions only recognise human inventors,[1] so your contracts should specify whether any improvements or inventions generated by autonomous systems are assigned to your business, or the software provider or operator.
• Safety cases and certification — If you’re using AI for anything safety-critical, such as crewed missions, collision avoidance, or nuclear-powered systems, be prepared for regulators to require detailed safety cases, validation evidence, and ongoing monitoring to demonstrate your systems are safe and reliable.

Regulatory landscape – licences, dual-use goods and compliance

• Launch, re-entry and payload licences — Every country has its own rules for launching, landing, and operating space assets. Start early and build in plenty of time for regulator engagement (and pre-engagement) and approvals. Don’t overlook environmental, safety, and re-entry permits, especially if your mission involves returning hardware or samples to Earth.
• Export controls and sanctions — Space tech is often “dual-use” (civil and military), so export control laws can apply to hardware, software, and even technical data. Map out the origin and destination of all components and technology early, and check for any restrictions or licensing requirements.
• Spectrum and orbital slots — Satellites require both an orbital slot and a radio frequency allocation to operate effectively. Failure to secure these can leave your satellite unable to function as planned. With competition for spectrum and slots intensifying, start the application process early and coordinate with technical and legal teams to avoid costly delays.
• Space sustainability and ESG — Space is becoming increasingly congested, and both regulators and investors now expect operators to have robust debris mitigation and end-of-life plans (such as de-orbiting old satellites or moving them to graveyard orbits). These requirements are now influencing licensing decisions and can also impact your insurance premiums.

Contracts and risk allocation – your primary tool for managing risk

• Sequencing is key — When defining project milestones, especially in development-heavy projects, consider how payment triggers, delivery obligations, and risk transfer points align with your contractual protections and funding needs. Taking a holistic approach to sequencing these milestones, such as regulatory approvals and go-live dates, can help avoid cashflow or operational bottlenecks.
• Performance warranties vs. limitations of liability — Most manufacturer contracts limit liability for product failures, often to a fraction of the asset’s value. Review your insurance, damages provisions, and contract terms together to ensure there are no gaps - otherwise, you could be left exposed if something goes wrong.
• Control codes escrow and step-in rights — If you’re borrowing money, your lender will want a way to take control of the asset if there’s a default. This usually means access to command codes, software, and operational rights. Negotiate clear terms for how and when these rights are transferred, and consider using escrow arrangements to balance security and operational continuity.
• Cross-waivers and indemnities — Some jurisdictions and space agencies require all parties involved in a launch to waive claims against each other (cross-waivers). Review your contracts to ensure you’re clear on what your liability position is and what your rights are if something goes wrong.

Key take-aways

1. Start with IP – and finish there too. Who owns the technology and the data is what drives value. Make sure you lock this down in every contract, from NDAs to JVs.
2. Insurance is a team sport. Get your brokers and underwriters involved early, and make sure your cover lines up with your contracts and the law.
3. AI is moving faster than the rules. Keep good records and be clear about who’s responsible if your AI makes a mistake.
4. Compliance is multi-layered. Map out all the countries and rules your project touches before you spend big.
5. Contracts remain king. Well-drafted, space-specific contracts are still the best way to manage risk and attract investment.

If you’d like to discuss any of these issues – or want a quick health check on your space project – get in touch with our space team.