Abstract

This chapter will examine the application of international private law-related instruments to the space sector, with a focus on international commercial law and secured transactions law. The chapter will pay special attention to the Space Protocol of the Cape Town Convention, which is an international secured transactions law treaty for the space sector, adopted at a Diplomatic Conference in 2012 under the auspices of the International Institute for the Unification of Private Law (UNIDROIT). As private investment in the space sector grows, alongside the development of innovative technologies such as on-orbit servicing, in-space manufacturing, and software-deployed satellites, the importance of security rights in space assets increases and more deals are concluded with traditional creditor-debtor-type arrangements. This chapter will highlight how these types of arrangements would operate in outer space and the remedies available to creditors in cases of insolvency of a debtor. In examining the Space Protocol, the chapter will also highlight its potential benefits for NewSpace, as well as the safeguards included in the Treaty, keeping in mind the nature of the space industry. The chapter will conclude with an assessment of where the space financing industry presently stands in terms of the financing models being used, the areas it is likely to expand into, and how secured transactions law could become an important part of this.