Abstract
It is not always easy to establish liability pursuant to international law of outer space, yet damages in the space sector can be considerable. The damaging potential of space activities can exceed the capacity of any single space faring entity to make reparation. Absolute and unlimited liability could render the highly hazardous activities uninsurable. Complex causation questions may complicate the situation further. The mere determination of the liable entity can be a problem. Accordingly, allocation of losses within a larger community of relevant entities to balance the competing concerns would seem useful. It could better retain the economic viability of the space sector, yet still secure adequate indemnification for damages. Compensation claims for damage resulting from particularly risky activities should be facilitated, but operators of activities that are deemed necessary yet entail high risks should be shielded from excessive claims. The setting in the space sector seems in many respects similar to that in the use of nuclear power, which also entails significant risks. In this sector, the solutions adopted include, inter alia, a three-tiered system of compensation with absolute but limited liability of the operator of a nuclear installation, coupled with limited liability of the state in which the installation is located, and an international compensation fund. There are also certain other examples of international trust fund mechanisms serving very similar purposes which the space sector could draw inspiration from.
Recommended Citation
Viikari, Lotta
(2010)
"A New Liability Regime for the Space Sector – an Economic Imperative,"
Indian Journal of International Economic Law: Vol. 3, Article 10.
Available at:
https://repository.nls.ac.in/ijiel/vol3/iss2/10