The UK has a unique opportunity to take the lead in the development of space law and regulation. The UK space sector is the rising star of the UK economy having contributed £7.7 billion of direct value in 2020/21. It has grown by 3.5% between 2018/19 and 2020/2021, outpacing the UK economy’s growth. With nearly 1,800 organisations employing 52,000 highly-skilled people, the income of the UK space market is almost entirely commercially focused.
The space sector is an attractive area for legal professionals. Compared to other jurisdictions, the UK legal sector has unique strengths, such as its globally recognised common law tradition and expertise in cross-border transactions, putting it in a leading position in space law. The UK’s goal-based regulatory approach for space launches is also more flexible than the more prescriptive licence models operating in other jurisdictions, and changes have been proposed to improve operator liability and insurance certainty. English law is already the governing law of choice for high-value satellite contracts and in-orbit servicing agreements. Arbitration rules – such as those of the London Court of International Arbitration - have already been used in satellite disputes. The government’s 2024 Space Industrial Plan further pledges to grow the UK’s share of the global space market through a targeted ‘invest to export’ approach.
Lawyers play a key role in enabling private investment in space initiatives, particularly in satellite launches, orbital logistics, spaceports and space-derived data services. Complex space-based infrastructure such as non-geostationary orbit (NGSO) mega-constellations and direct-to-device (D2D) satellite services that complement terrestrial networks are rewriting contractual models requiring lawyers to bridge telecoms, data protection and space statutes.
Another emerging area of space law is sustainability as concerns about orbital debris, emissions from rocket launches and the long-term viability of space operations grow. Lawyers should prepare for increased due diligence and compliance work in this emerging regulatory space. Ofcom plans to embed mandatory collision-avoidance reporting and post-mission-disposal undertakings into licences, likely leading to future regulations similar to environmental law on earth.
However, there are challenges that the UK must overcome. The space sector is facing a global skills shortage, so workforce mobility will be essential. The UK also needs expanded space-focused investment incentive schemes to fuel the innovation really needed. Space-based infrastructure will increasingly be considered critical national infrastructure, attracting export control, supply chain and cyber resilience obligations. Legal teams will be called to advise on innovative funding models such as venture capital, joint ventures and public-private partnerships. There is also a role for lawyers to facilitate regulatory sandboxes and incentives to support sector growth.
Space is no longer a distant government-only science experiment; it is the critical digital infrastructure of the 2030s. Highly capable NGSO constellations, radio spectrum evolution and D2D services are bringing space-based solutions to mainstream economic activity on earth.
The UK finds itself facing unique opportunities to be a world leader in space law. To fully grasp this, it must use its advantages of an innovation-led regulatory approach, deep space industry expertise and world-class legal services to consolidate its position as a global legal powerhouse in the space sector.
Marcus Bagnall is partner at Wiggin Law. Akber Datoo is founder and CEO of D2 Legal Technology and co-chair of the Law Society Technology and Law Committee
No comments yet