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Space Law in the Commercial Era: orbital mechanics, debris and international liability

From the corpus iuris spatialis of 1967 to the Italian Space Act (Law 7/2023): a techno-legal analysis of orbital mechanics as a regulatory foundation, the Kessler Syndrome as a systemic risk, ITU spectrum management, space resources and international liability in the era of the commercial space economy.

Author: Avv. Francesco Lizzani Last revised: 24 agosto 2026 3,077 words · ~15 min Versione italiana

Abstract

The global space economy surpassed $600 billion in 2024 and is projected to reach $1.8 trillion by 2035 (Morgan Stanley). This exponential growth — driven by private operators such as SpaceX, OneWeb, Amazon Kuiper and mega-LEO constellations — collides with an international regulatory corpus conceived for the space race of the 1960s, when actors were exclusively sovereign states. This article analyses the tension between orbital physics — which structurally constrains legal possibilities — and a rapidly evolving regulatory framework, from the foundations of international space law to Italy's first Space Code (Law 7/2023), with specific attention to opportunities and risks for the specialist legal advisor.

1. Physical Foundations: Orbital Mechanics as the Basis of Law

Understanding space law without knowing orbital mechanics is like understanding maritime law without knowing ocean currents. The physics of orbit determines the technical constraints within which the legislator operates — and often the legal rule is nothing more than the translation into prescriptive language of a physical law.

1.1 Kepler's Laws and Orbital Structure

Kepler's three laws (1609-1619) describe the motion of bodies in orbit. The third law — the square of the orbital period is proportional to the cube of the semi-major axis of the orbit — has a direct regulatory consequence:

T² = (4π²/GM) · a³

where T is the orbital period, G is the universal gravitational constant, M is the Earth's mass, and a is the semi-major axis of the elliptical orbit. Applying this relation, a geostationary (GEO) satellite, with period T = 24 hours, orbits exactly 35,786 km above the equator at an orbital velocity of approximately 3.07 km/s.

Orbits relevant to space law

LEO (Low Earth Orbit) — 200-2,000 km: communication constellations (Starlink, OneWeb), ISS, Earth observation. Period ~90 min. Highest debris density.

MEO (Medium Earth Orbit) — 2,000-35,786 km: GPS/GNSS (NAVSTAR, Galileo, GLONASS). Period ~2-24 hours. Intermediate Van Allen belt.

GEO (Geostationary Orbit) — 35,786 km: telecommunications, weather, broadcasting. Period 24 hours — satellite fixed relative to Earth. Finite natural resource: the geostationary arc is limited. Its use is regulated by the ITU on a first-come, first-served basis, tempered by multilateral agreements.

HEO (Highly Elliptical Orbit) — e.g. Molniya orbit: extended polar coverage, used for communications at high latitudes (Arctic Russia, Scandinavia).

1.2 Delta-v, Launch Windows and Legal Constraints

Delta-v (Δv) measures the velocity change required to transfer a spacecraft from one orbit to another. The Tsiolkovsky equation relates Δv to propellant mass:

Δv = v_e · ln(m₀/m_f)

where v_e is the effective exhaust velocity, m₀ the initial mass and m_f the final mass. This relationship requires that every orbital manoeuvre has a propellant cost — and therefore an economic cost — which translates into a technical constraint on deorbiting operations. The obligation to deorbit within five years of end-of-life (IADC/ITU standard for LEO) requires reserving sufficient Δv to lower the perigee below 200 km, where residual atmospheric drag completes natural deorbiting within a few years.

1.3 The Kessler Syndrome: The Systemic Risk of Orbit

In 1978, Donald J. Kessler and Burton G. Cour-Palais published a landmark article in the Journal of Geophysical Research: "Collision frequency of artificial satellites: the creation of a debris belt". Their analysis demonstrated that, beyond a critical density of objects in orbit, the probability of collisions is no longer negligible — and each collision generates new debris, triggering an autocatalytic cascade that renders the orbit unusable.

Mathematical Model of the Kessler Syndrome

The debris density n(h) at altitude h follows a logistic differential equation: dn/dt = α·n² − β·n, where α is the fragmentation coefficient (probability of generating new debris per collision × number of collisions per unit time) and β is the natural decay rate due to residual atmospheric drag. When α·n > β, the system is unstable: density increases exponentially. According to NASA LEGEND and ESA MASTER models, several LEO altitude regimes (between 900 and 1,000 km) are already beyond the critical threshold.

As of 2026, the NASA Orbital Debris Program Office tracks approximately 27,000 objects larger than 10 cm, estimates 500,000 objects between 1 and 10 cm (untrackable but capable of destroying a satellite), and over 100 million objects between 1 mm and 1 cm (capable of penetrating ISS modules). The legal implications of this physical scenario are direct: the Liability Convention 1972 could be activated by an increasing number of collision events, raising the frequency of intergovernmental disputes.

2. The International Corpus Iuris Spatialis

International space law is founded on five multilateral treaties negotiated within UNOOSA (UN Office for Outer Space Affairs), supplemented by a vast body of UN General Assembly resolutions, IADC guidelines and ITU regulations.

2.1 The Outer Space Treaty (OST 1967)

The Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies (27 January 1967, 113 States parties) constitutes the Magna Carta of space law. Its fundamental principles are:

  • Freedom of exploration and use (art. I): outer space is the "province of all mankind", freely explorable and usable by all States;
  • Non-appropriation (art. II): outer space, the Moon and celestial bodies "are not subject to national appropriation by claim of sovereignty, by means of use or occupation, or by any other means" — the prohibition addresses States, not explicitly private actors;
  • Peaceful use (art. IV): prohibition on placing nuclear or weapons of mass destruction in orbit or on celestial bodies; the Moon and celestial bodies must be used exclusively for peaceful purposes;
  • State responsibility (arts. VI and VII): States are internationally responsible for the space activities of their nationals and private entities — a principle of direct liability for private sector activities that finds few parallels in general international law;
  • Jurisdiction and control (art. VIII): the State of registry retains jurisdiction and control over a space object and its personnel, even in space.

The structural tension of the OST in the commercial era

Art. II OST prohibits sovereign appropriation of space, but says nothing explicitly about the commercial exploitation of resources. The USA (2015), Luxembourg (2017), UAE (2020), and Japan (2021) have enacted legislation recognising their private operators' right to extract and own space resources — without claiming sovereignty over the celestial body. The compatibility of these laws with art. II OST is the subject of vigorous international scholarly debate.

2.2 The Liability Convention (1972) and the Structure of Liability

The Convention on International Liability for Damage Caused by Space Objects (29 March 1972, 98 States parties) governs the mechanisms of international liability for damage caused by space objects. It establishes a dual regime:

  • Absolute liability (art. II): for damage caused on the surface of the Earth or to aircraft in flight. No proof of fault by the launching State is required — the causal link between the space object and the damage suffices. It is the most extensive form of strict liability in international law;
  • Fault-based liability (art. III): for damage caused in outer space, on orbital structures, or to astronauts of another State. General principles of international responsibility apply — proof of an internationally wrongful act is required.

The sole historical precedent for formal application of the Liability Convention is the Kosmos 954 case (1978): the Soviet nuclear-powered satellite fell over Canada. The USSR paid CAD 3 million as partial settlement — implicitly recognising the principle of absolute liability without formally admitting responsibility.

2.3 The Registration Convention (1975)

The Convention on Registration of Objects Launched into Outer Space (14 January 1975) establishes a mandatory registration system with the UN Secretary-General. Each space object must be registered with: the name of the launching State, the designation of the object, the date and territory of launch, and orbital parameters (nodal period, inclination, apogee, perigee, period). Registration determines jurisdiction and control over the object — and consequently the attribution of liability under the Liability Convention.

2.4 The ITU and the Management of Radio Spectrum and Orbits

The International Telecommunication Union (ITU) manages two finite shared natural resources: the radio frequency spectrum and the geostationary arc. The Radio Regulations (RR) govern the international coordination of orbits and frequencies through a three-stage process:

  1. Filing: the State notifies the ITU of its intention to use a specific frequency/orbit;
  2. Coordination: bilateral agreement with States whose networks may suffer interference;
  3. Notification and Registration: registration in the Master International Frequency Register (MIFR) — which confers internationally recognised rights.

The "use it or lose it" principle and LEO mega-constellations

Art. 11 of the ITU RR requires that the use of an orbit/frequency commences within 7 years of notification (reducible to 2 years with an accelerated implementation plan). This requirement was central to the dispute between SpaceX (Starlink) and Amazon (Project Kuiper) over Ka-band frequencies, as well as tensions between Starlink and developing countries claiming geostationary slots for future needs. The mega-constellation "satellite rush" has rendered ITU procedures designed for single satellites obsolete.

3. The European Regulatory Framework

3.1 Regulation (EU) 2021/696 — EU Space Programme

Regulation (EU) 2021/696 established the European Union Space Programme and the EU Agency for the Space Programme (EUSPA). The main programmes are:

  • Galileo: the European global navigation satellite system (GNSS), with 30 operational satellites and <1 metre accuracy for authorised users. Managed by EUSPA, it serves over 4 billion devices.
  • Copernicus: the Earth observation system — the world's largest Earth remote sensing data platform, with 6 Sentinel satellite families. Copernicus data are open data, free for any user. Commercial applications of Copernicus data now represent a multi-billion euro market with complex IP profiles.
  • SSA/SST (Space Situational Awareness): the European system for space object surveillance and tracking — essential for orbital traffic management and collision prevention.
  • GOVSATCOM: secure satellite communications for EU and Member State governmental institutions.

3.2 ESA: The Contractual Framework for European Space Activities

The European Space Agency (ESA) — an intergovernmental organisation with 22 Member States and an annual budget of ~€7.8 billion — is the principal European procurer of space activities. ESA contracts present relevant regulatory specificities:

  • ESA General Clauses and Conditions: govern intellectual property generated during contract performance — the Background/Foreground IP regime is analogous to Horizon Europe but with specificities for dual-use technologies (civil/military);
  • Technology Transfer: technologies developed with ESA funding are subject to mandatory licensing upon the Agency's request — a significant limitation for space tech startups;
  • ITAR/EAR Compliance: many space components are subject to US export controls (International Traffic in Arms Regulations), making ESA contracts often dependent on US export licences — a techno-legal constraint that every legal advisor in the sector must manage;
  • Responsible Space: new ESA guidelines require deorbiting plans and space debris mitigation as conditions for participation in programmes.

4. The Italian Regulatory Framework: Law no. 7/2023

With Law of 2 January 2023, no. 7 (Provisions on space and the exercise of space activities), Italy equipped its legal order with a Space Code — the first in Italian history — filling a regulatory vacuum that had existed for decades.

Space Law in the Commercial Era: orbital mechanics, debris and international liability
AspectLaw 7/2023 Regulation
AuthorisationAll space activities (launch, operation, re-entry, ground control) conducted by Italian entities or from Italian territory require government authorisation. Establishes the national register of space objects.
Competent authorityPresidency of the Council of Ministers, delegating to the Italian Space Agency (ASI) for technical review. A dedicated regulatory authority is envisaged (not yet fully operational).
Authorisation criteriaTechnical, financial and organisational reliability of the operator; compliance with international conventions; space debris mitigation plan; adequate insurance coverage.
LiabilityThe authorised operator is directly liable for damages caused by space activities. The Italian State has a right of recourse within the limits of payments made under the Liability Convention.
Mandatory insuranceObligation to take out third-party liability insurance. The cap is determined case by case by the competent authority based on the nature and risk of the activity.
Space resourcesNot explicitly regulated — a regulatory gap that the law delegates the Government to fill by legislative decree, in conformity with evolving international law norms.
SanctionsSpace activity without authorisation: administrative sanction up to €500,000. Violation of authorisation conditions: suspension or revocation.

ASI Strategic Plan and Opportunities for Private Operators

The Italian Space Agency manages the 2024-2028 Strategic Plan, with a budget of approximately €1.5 billion. Italy is among the largest ESA contributors and has an excellent space industry (Leonardo, Thales Alenia Space, Avio, D-Orbit). The regulatory framework created by Law 7/2023 is designed to attract private operators — national and international — wishing to use Italy as a launching State or registration State for their space activities.

5. Space Resources: The Great Open Regulatory Debate

The question of the extraction and commercial exploitation of space resources — lunar minerals, water ice, asteroid metals — is the most controversial legal frontier in contemporary space law. The value of mineral resources in the asteroid belt is estimated at tens of trillions of dollars. The regulatory question is therefore far from academic.

The interpretative crux lies in art. II OST, which prohibits sovereign appropriation of space but does not explicitly address the appropriation of extracted resources. The main national approaches are:

  • USA — Commercial Space Launch Competitiveness Act (2015): explicitly recognises the right of US citizens to "possess, transport, use and sell" extracted space resources, without claiming sovereignty over celestial bodies;
  • Luxembourg — Space Resources Law (2017): Europe's first law on the subject, analogous US approach. The Luxembourg Space Agency has attracted numerous space resources startups (Planetary Resources, ispace, Astroscale);
  • UAE, Japan, Norway, New Zealand: analogous legislation;
  • EU: no specific legislation; the European Parliament adopted a non-binding resolution (2021) calling for a coordinated European framework;
  • Italy: Law 7/2023 does not regulate space resources — the gap must be filled by a delegated legislative decree.

The Artemis Accords — A Framework Parallel to UN Law

The Artemis Accords (2020, promoted by NASA) are bilateral agreements between the USA and 45 countries (including Italy, signatory in 2022) establishing a regime of "safety zones" around space activities, implicitly recognising the right to commercial use of space resources, and imposing transparency and deconfliction obligations. They are not a multilateral treaty — their compatibility with the OST and the role of COPUOS is contested by Russia and China.

6. Space Debris: Liability, Mitigation and New Norms

The management of space debris is today the most urgent techno-legal challenge in the sector. With the launch of thousands of new satellites (SpaceX alone has authorised over 42,000 Starlink satellites), the risk of collision in LEO increases non-linearly.

Size distribution of debris: legal implications

The size distribution of debris follows a power law: N(d) ∝ d⁻ᵅ, with α ≈ 2.5-3.5 according to NASA LEGEND estimates. Objects <10 cm — untrackable with current radar systems — are the most numerous and insidious: sufficient to destroy a satellite without producing a trackable event. This creates a fundamental legal problem: the Liability Convention requires proof of a causal link between an identified space object and the damage — proof impossible for sub-centimetre debris.

The main international norms on debris mitigation are:

  • IADC Space Debris Mitigation Guidelines (Inter-Agency Space Debris Coordination Committee): the reference technical document (2002, updated 2007) adopted by all major space agencies. The "25-year rule" for deorbiting in LEO has now been updated to 5 years from end of operational life;
  • ITU Resolution 18 (Rev. WRC-19): introduces coordination obligations for LEO mega-constellations, including orbital traffic management plans;
  • UN COPUOS Guidelines for Long-term Sustainability of Outer Space Activities (2019): 21 non-binding guidelines for long-term sustainability — basis for future mandatory norms;
  • ESA Zero Debris Charter (2023): voluntary commitment by ESA and the European space industry to eliminate net debris production by 2030.

On the liability front: the Liability Convention covers damage caused by identifiable space objects. The insurance regime for damage from untrackable debris is still evolving — it represents one of the most active fronts in the space insurance market (Lloyd's, Munich Re) and in COPUOS doctrinal discussions.

Space law in the commercial era offers structurally asymmetric professional opportunities: demand for specialist counsel is growing rapidly, while the supply of genuinely competent professionals remains extremely limited. A legal advisor operating in this sector must be able to:

  1. Structure the launch operation in its full regulatory scope: choice of State of registration (with implications for jurisdiction and liability), launch licence, NORAD/UNOOSA registration, ITU frequency coordination, export control compliance (ITAR/EAR);
  2. Draft launch services contracts that adequately address: launch provider liability limitations, cross-waiver of liability clauses between the parties (consolidated practice derived from the Space Act), mandatory insurance, rules for launch failure and loss of spacecraft;
  3. Manage payload hosting and in-orbit services contracts: in-orbit servicing, refuelling, debris removal are new business models creating new contractual categories without precedent — who owns a servicing vehicle that physically docks with a third-party satellite? How is this operation legally characterised?
  4. Preside over the intersection of space law and IP: Earth observation data (Copernicus, DigitalGlobe, Planet) create a data and derivatives market with complex IP, licensing and data protection issues — including GDPR for images depicting identifiable natural persons;
  5. Assist operators in authorisation under Law 7/2023: the Italian procedure is still being established — the first generation of authorisations has strategic value as a regulatory precedent.

Conclusions

Space law is today one of the most technically complex and strategically relevant legal disciplines. The coexistence of multilateral treaties conceived in the 1960s for a world of state actors, with a reality of hundreds of private operators launching thousands of satellites per year, creates a structural regulatory tension that no single international document has yet resolved.

Italy, with Law no. 7/2023, has taken an important step towards a comprehensive regulatory regime for the sector. Significant gaps remain — on space resources, orbital traffic management, and the insurance regime for untrackable debris — which the next legislature will need to fill.

For legal counsel, the time is now: as John F. Kennedy observed about a completely different objective, one does it not because it is easy, but because it is hard. Hard enough to be definitively valuable.

Sources and References

  1. UNOOSA — Outer Space Treaty (1967): unoosa.org — Outer Space Treaty
  2. UNOOSA — Liability Convention (1972): unoosa.org — Liability Convention
  3. UNOOSA — Registration Convention (1975): unoosa.org — Registration Convention
  4. ITU — Space Services: itu.int/en/ITU-R/space
  5. Law of 2 January 2023, no. 7 (Italian Space Code): gazzettaufficiale.it
  6. ASI — Italian Space Agency: asi.it
  7. ESA — European Space Agency: esa.int
  8. EUSPA — EU Space Programme Agency: euspa.europa.eu
  9. NASA Orbital Debris Program Office: orbitaldebris.jsc.nasa.gov
  10. IADC — Space Debris Mitigation Guidelines: iadc-home.org
  11. Luxembourg Space Agency: space-agency.public.lu
  12. Kessler, D.J. & Cour-Palais, B.G. (1978). "Collision frequency of artificial satellites: the creation of a debris belt". Journal of Geophysical Research, 83(A6), 2637–2646: agupubs.onlinelibrary.wiley.com
  13. Kepler, J. (1609). Astronomia Nova; (1619). Harmonices Mundi — physical foundation of orbital mechanics.
  14. Tsiolkovsky, K.E. (1903). "Exploration of the Universe with Reaction Machines". Nauchnoye Obozreniye — fundamental equation of space propulsion.
  15. Regulation (EU) 2021/696 — EU Space Programme: EUR-Lex CELEX:32021R0696

Note. This paper is intended for study and technical-legal discussion. It is not legal advice on any specific matter and reflects the regulatory framework as of the revision date shown.

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