Understanding International Space Law and the Liability Mechanism for Commercial Outer Space Activities—Unravelling the Sources

The status and liability of non-governmental entities for commercial use of outer space activities on behalf of space launching states are not very clear under the existing space law regimes. Non-governmental entities are those who carry private space activities such as commercial launching, supplying different equipment or parts to space agencies and manufacturing spacecraft and satellite. The possible litigation relating to the commercial activities are mainly the financial consequence of damage caused and also the technical complications that private entities face in case of supply of defaulted parts to the space agencies. According to Article VI of the Outer Space Treaty 1967 and Articles II and III of Liability Convention 1972, launching country is liable for any activities in outer space. Even in the case of non-governmental activities, the launching state is liable. Therefore, in the event of any commercial activity from any sovereign states, the state is liable for any accidents and consequential damages. This article focusses on specific issues such as liability for commercial outer space activities of nongovernmental entities in the existing international space law regimes. It explores the applicable principle of space law and international law in outer space activities. The work also focusses on the impact on space liability regime as well as on the legal efficiency of the links between private entities and state liability. This exercise is important in the background of the increasing number of private spacecrafts scheduled for launching in the future.