Challenges Posed by the Growing Economic Impact of Space SMEs for International Space Law

The increasing involvement of small and medium-sized businesses (SMEs) in space raises new questions and challenges to international space law (ISL); indeed, said legal framework was adopted a few decades ago and seems to be at odds with the methods of operation employed by private companies. Thus, on the one hand, SMEs have in some cases attempted to avoid rules—emanating from ISL—that are binding on all operators, as they regard them to be restrictive and State-centric (e.g. on the registration of space objects); but on the other hand, a number of experts contend that ISL fails, in turn, to adequately adapt to and regulate the participation of SMEs in space, which appears to be growing and promising. As a result, the space industry makes major efforts to promote the revisiting of ISL rules, especially the non-appropriation principle, to encourage commercial activities, such as (commercial) space resource exploitation. The present chapter argues that ISL already provides for space resource exploitation, though on the basis that outer space is a res communis; which implies specific duties and obligations such as preserving resources for present and future generations. Therefore, any new framework promoting SME activity should remain in line with this principle; otherwise, it would alter the very essence of outer space endeavors, as established in ISL.