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NewSpace Tipping the Balanceof Domestic Liability Regimes:
A U.S. Perspective
Nathan A. Johnson
J.D., George Washington University Law School 2014
LL.M., University of Nebraska College of Law 2015 (expected)
Nathan A. Johnson 2
NewSpace Affect on Space Development
Combined 2014 GSO and NGSO Historical Launches and Lunch Forecast(“2014 Commercial Space Transportation Forecasts,” FAA May 2014)
• “an emerging new segment of space launch demand”
– FUTRON white paper “Market Characterization: Launch of Very-Small and Nano Sized Payloads Enabled by New Launch Vehicles” IAC-10.E6.3.9
Nathan A. Johnson 3
National Risk for Space Activities
• Outer Space Treaty, Art. VI- “international responsibility”
- “authorization and continuing supervision”
• Liability Convention- Art. II “absolute liability”
- Art. III: fault based
Question: Does Increased NewSpace ActivityExpose Governments To More Risk?
Nathan A. Johnson 4
Domestic Liability Regime: United States• Launch & Reentry
- Who needs a license?• US citizen; or• Launching from the US
- What does a license require?• Inspection• Payload Review• Monitoring• Financial Responsibility
Nathan A. Johnson 5
Balance of Risk: Private v. Public• Financial Responsibility = Risk Sharing• Tier 1: Insurance (or other
demonstration)• To cover the MPL to Third-Parties, as
determined by the FAA• Not to exceed $500 Million (+ $100 Million
for Government)• Tier 2: Government Appropriation, aka
Indemnification• If claims exceed Tier 1, Congress will seek to
appropriate funds• Up to an additional approximately $2.8
Billion (in 2015)
Should IndemnificationBe Allowed to Expire?
*SpaceX
Nathan A. Johnson 6
Government Jurisdiction over Space Activities
- Direct Authorization• FAA – Launch & Reentry• FCC – Spectrum• NOAA – Remote Sensing
- Indirect Authorization (Payload Review)• NASA• Department of Defense• Department of State
Nathan A. Johnson 10
Conclusion
• Private Companies still investing, developing, and seeking regulatory certainty
• US Government has enough flexibility to support or intervene where they deem risk