INTRODUCTION
For much of the twentieth century, outer space was viewed as the exclusive domain of sovereign states, where exploration was driven by scientific advancement, national prestige, and geopolitical rivalry. Today, however, this landscape has undergone a fundamental transformation. The emergence of private enterprises engaged in satellite deployment, orbital research, space tourism, and the development of commercial space stations has shifted outer space from a predominantly state-centric arena to an increasingly commercial ecosystem. This transition has created unprecedented opportunities for innovation and economic growth, but it has also exposed significant shortcomings in the existing legal framework governing activities beyond Earth’s atmosphere.
The prospect of privately owned and operated space stations illustrates this regulatory dilemma. Unlike the International Space Station[1], which operates under an intergovernmental framework with clearly defined responsibilities, commercial space stations involve multiple private stakeholders, cross-border investments, and diverse contractual relationships. As these stations move closer to becoming operational realities, fundamental legal questions remain unresolved. Which State exercises criminal or civil jurisdiction over disputes arising aboard a privately operated station? Who bears liability in the event of accidents, environmental damage, or collisions with other space objects? How should intellectual property created in orbit be protected, and what mechanisms should govern disputes between private entities operating across multiple jurisdictions? Existing international space law offers only limited answers to these questions.
Although several countries, including India, have begun encouraging private participation in the space sector through policy reforms and institutional mechanisms[2], legislation has not kept pace with technological progress. Consequently, commercial space activities continue to operate within a fragmented legal environment where policy objectives frequently outstrip enforceable legal obligations. This growing disconnect highlights the need to reassess whether the present legal framework is capable of regulating an increasingly privatised space economy.
EVOLUTION OF INTERNATIONAL SPACE LAW
The development of international space law began during the Cold War, when rapid technological advancements and the launch of artificial satellites necessitated a legal framework for activities beyond national territory. The adoption of the Outer Space Treaty, 1967[3] established the foundational principles governing outer space, including its peaceful use, freedom of exploration, non-appropriation by States, and the principle that States bear international responsibility for both governmental and non-governmental national space activities. These principles were subsequently supplemented by treaties such as the Liability Convention, 1972[4], which allocates responsibility for damage caused by space objects, and the Registration Convention, 1975[5], which requires States to maintain records of objects launched into outer space.
Collectively, these instruments have served as the cornerstone of international space governance for over five decades. However, they were drafted at a time when governments were the primary participants in space exploration and commercial space stations were little more than speculative concepts. While the treaties recognise that States remain internationally responsible[6] for the activities of private entities operating under their jurisdiction, they provide limited guidance on how such entities should be licensed, supervised, regulated, or held directly accountable. As private corporations increasingly assume roles once reserved for States, the disconnect between technological progress and legal development has become increasingly evident, revealing a regulatory vacuum that demands both international and domestic legislative attention.
LEGAL CHALLENGES POSED BY PRIVATE SPACE STATIONS
The emergence of private space stations fundamentally challenges the assumptions upon which international space law was built. Existing treaties envisage a system in which States remain the principal actors and bear international responsibility for activities conducted under their jurisdiction. However, the increasing commercialisation of outer space has blurred the distinction between governmental and private actors, exposing significant legal uncertainties that existing treaties fail to adequately address.
One of the most pressing concerns is the issue of jurisdiction. Commercial space stations are likely to involve multinational ownership, international crews, and passengers of different nationalities. In such a scenario, determining which country’s criminal or civil laws apply becomes increasingly complex. While the International Space Station operates under an Intergovernmental Agreement[7] that allocates jurisdiction among partner States, no comparable legal framework currently exists for privately owned orbital habitats. Questions concerning criminal offences, contractual disputes, labour rights, taxation, and consumer protection aboard commercial stations remain largely unresolved, creating uncertainty for operators, employees, and investors alike.
Another significant challenge concerns liability and accountability. Under the Outer Space Treaty and the Liability Convention[8], States continue to bear international responsibility for national space activities, including those undertaken by private entities. Consequently, even where a commercial operator causes damage through negligence or operational failure, international liability ultimately rests with the launching State. This indirect model of accountability is increasingly inadequate for a commercial ecosystem where private corporations exercise substantial operational autonomy. The absence of internationally harmonised standards governing insurance obligations, indemnification, and financial responsibility further compounds this uncertainty.
Private space stations also intensify concerns relating to space debris[9] and intellectual property. The growing number of commercial platforms in low Earth orbit increases the risk of collisions and orbital congestion, yet existing international law provides few enforceable obligations requiring private operators to mitigate debris or compensate for long-term environmental harm. Likewise, commercial research conducted in microgravity raises unresolved questions regarding ownership of inventions, protection of confidential information, and resolution of cross-border intellectual property disputes. Collectively, these issues expose significant gaps in the current international legal regime and demonstrate that existing space law has not evolved at the same pace as commercial innovation.
INDIA’S REGULATORY VACUUM
These global legal challenges are particularly relevant for India as it transitions from a predominantly State-led space programme to a commercially driven space economy. Historically, India’s space activities were undertaken almost exclusively by the Indian Space Research Organisation (ISRO). However, the establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe)[10] and the adoption of the Indian Space Policy, 2023 signal a deliberate policy shift towards encouraging private participation in satellite launches, manufacturing, downstream services, and future commercial space infrastructure.
Despite these reforms, India’s legal framework remains underdeveloped. While IN-SPACe performs an important facilitative and regulatory role, its powers are derived primarily from executive policy rather than comprehensive legislation enacted by Parliament. More importantly, India continues to lack a dedicated national space law governing the licensing, supervision, liability, and accountability of private space operators. The Draft Space Activities Bill, introduced in 2017[11], proposed a statutory framework addressing these issues and ensuring compliance with India’s international obligations. However, the Bill has yet to be enacted, leaving critical aspects of private space regulation uncertain.
This legislative vacuum has significant legal and commercial consequences. Investors require certainty regarding licensing, insurance, liability, and dispute resolution before committing substantial resources to space ventures. Simultaneously, India remains internationally responsible for private space activities conducted under its jurisdiction without possessing a robust domestic legal framework to regulate and supervise them effectively. As India’s private space industry continues to expand, policy initiatives alone cannot substitute for comprehensive legislation. A clear and enforceable legal framework is therefore indispensable to balance commercial innovation with regulatory accountability and to position India as a credible leader in the emerging global space economy.
THE WAY FORWARD
The rapid commercialisation of outer space necessitates a regulatory framework that is capable of addressing the realities of private participation. For India, the foremost priority is the enactment of a comprehensive national space law to complement existing policy initiatives. Such legislation should establish a transparent licensing regime, clearly define the rights and liabilities of private operators, prescribe mandatory insurance requirements, and ensure continuous governmental supervision in accordance with international treaty obligations. It should also provide legal clarity on issues relating to intellectual property, dispute resolution, and space debris mitigation. At the international level, greater cooperation is equally essential[12] to harmonise jurisdictional rules and develop uniform standards for privately operated space stations. A coherent domestic and international regulatory framework will provide the legal certainty necessary for sustainable commercial growth.
CONCLUSION
The emergence of private space stations marks a new phase in the evolution of space governance, one in which commercial entities play an increasingly significant role alongside States. While India has taken important steps to liberalise its space sector through the Indian Space Policy, 2023 and IN-SPACe, the absence of a comprehensive statutory framework continues to create uncertainty regarding licensing, liability, and regulatory oversight. As commercial space activities continue to expand, legal reform must keep pace with technological innovation. A robust and future-oriented legal framework will not only ensure compliance with international obligations but also strengthen investor confidence and promote responsible commercialisation. Ultimately, India’s aspirations to become a global space power will depend as much on the strength of its legal institutions as on its technological capabilities.
Author(s) Name: Avni Ojha (NLIU Bhopal)
References:
[1] Agreement among the Government of Canada, Governments of Member States of the European Space Agency, the Government of Japan, the Government of the Russian Federation and the Government of the United States of America concerning Cooperation on the Civil International Space Station (signed 29 January 1998, entered into force 27 March 2001) TIAS No 12927.
[2] Department of Space, Government of India, Indian Space Policy 2023 (2023).
[3] Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies (opened for signature 27 January 1967, entered into force 10 October 1967) 610 UNTS 205 (‘Outer Space Treaty’)
[4] Convention on International Liability for Damage Caused by Space Objects (opened for signature 29 March 1972, entered into force 1 September 1972) 961 UNTS 187.
[5] Convention on Registration of Objects Launched into Outer Space (opened for signature 14 January 1975, entered into force 15 September 1976)
[6] Outer Space Treaty (n 4) art VI
[7] Agreement concerning Cooperation on the Civil International Space Station (n 2)
[8] Outer Space Treaty (n 4) art VI; Convention on International Liability for Damage Caused by Space Objects (n 5) arts II–III.
[9] United Nations Committee on the Peaceful Uses of Outer Space, Space Debris Mitigation Guidelines of the Committee on the Peaceful Uses of Outer Space
[10] Government of India, Indian Space Policy 2023 (2023) ch 7
[11] Department of Space, Government of India, Draft Space Activities Bill 2017.
[12] United Nations Office for Outer Space Affairs, ‘Space Law Treaties and Principles’ https://www.unoosa.org/oosa/en/ourwork/spacelaw/treaties.html