The 9 terms at a glance
Open a term for the quoted texts, what is usually negotiated and what lenders and buyers ask.
| Term | ESA and EU | United States | UK and France |
|---|---|---|---|
| Licence to launch and operateNo licence, no business. Who holds it, what it covers and what it takes to keep it decide what a lender can rely on. | National laws today (France, Luxembourg, Italy and others). The proposed EU Space Act would require an EU authorisation, recognised across member states, from 2030. | FAA licence for launch and reentry (Part 450); FCC authorisation for the satellite and its spectrum; NOAA licence for remote sensing. | UK: Outer Space Act licence for UK persons abroad; Space Industry Act licence for spaceflight and spaceports in the UK; the CAA is regulator. France: LOS authorisation from the space minister, with CNES technical review. |
| Third-party liability and insuranceLaunching States are liable for damage, and pass that liability to operators. Caps, insurance and government backstops decide the exposure. | The 1972 Liability Convention makes the launching State liable. National laws pass liability to operators with caps and insurance. ESA contracts exclude consequential damages between the parties. | Insurance for maximum probable loss, capped at $500m third party and $100m government property. Government may pay claims above that up to $1.5bn plus inflation, for licences applied for by 30 Sep 2028. | UK: operator indemnifies the government, up to the limit in its licence; strict liability for damage on the ground; insurance set by regulations and licence. France: operator liability capped, with a State guarantee above the cap. |
| Cross-waiversEveryone involved in a launch bears their own losses. A missing waiver leaves a claim that insurance may not cover. | Contractual. Launch services agreements commonly include reciprocal waivers, flowed down to contractors. ESA contracts exclude consequential damages between the parties. | Statutory: FAA licences require reciprocal waivers between the licensee, its contractors and customers, and the government. NASA launch agreements carry a regulatory cross-waiver. | Contractual, in launch and hosting contracts. Neither the UK Acts nor the French LOS impose a statutory cross-waiver between commercial parties. |
| Procurement and geographic returnHow the government buys decides who can win. ESA steers work to member states, and the US must buy commercial launch where it can. | ESA scores tenders on price, technical marks and, where set, industrial policy and geographic return. EU programmes follow the Space Programme Regulation, with a 30% subcontracting target outside the prime's group on contracts above €10m. | Agencies buy under the FAR and their supplements, often through commercial item rules, Other Transactions and NASA Space Act Agreements. Federal launch must come from US commercial providers where possible. | UK: the Procurement Act 2023, with defence and security contracts for military space; UK Space Agency grants and national programmes. France: public procurement code and DGA/CNES contracts. |
| IP and data rightsWho owns what the government paid for. It decides whether the technology can be sold to anyone else. | ESA: the contractor owns the IP, ESA and participating states get access rights, and ESA can require assignment on failure to register or exploit. EU programmes: the Union owns assets created under them, with exceptions. | FAR 52.227-14: unlimited government rights in data first produced under the contract, with protection for limited rights data and restricted software. DoD uses DFARS terms. | UK MOD: contractor usually owns results with MOD use rights (DEFCON 705); vesting in MOD (DEFCON 703) only in exceptional cases. France: set by contract (CNES, DGA). |
| Export controlSatellites and launch technology are controlled goods. Export licences shape who can buy, invest and see the technology. | EU Dual-Use Regulation: an authorisation is needed to export listed items, including spacecraft and components in Category 9. Military items fall under national lists. | ITAR for spacecraft on USML Category XV; EAR 9x515 for commercial satellites moved off the USML. ITAR registrants must notify a change of ownership. | UK: Export Control Order 2008 for military goods, and the UK dual-use list. France: EU dual-use rules plus the war materials regime. |
| Spectrum and ITU filingsSpectrum rights are often the most valuable asset in a satellite business, and they come with deadlines. | Spectrum is national: each state files with the ITU and licenses use. The EU Space Act proposal leaves spectrum outside its scope. | FCC Part 25: GSO satellite in service within five years; NGSO half the constellation in six years and the rest in nine. A surety bond backs the milestones. | UK: Ofcom licenses spectrum use and manages UK ITU filings. France: ANFR handles ITU filings. |
| Change of control and transferLicences and government contracts rarely move without consent. It sets the deal timetable and the lender's enforcement plan. | ESA contracts cannot be transferred without prior authorisation, and may not be used as capital to float a company. National licences set their own transfer rules. | FCC approval before assigning a licence or transferring control of the licensee. FAA licences are transferred only by the FAA. CFIUS may review foreign investment. | UK: Outer Space Act licences transfer only with written consent; NSI Act mandatory notification for satellite and space technology. France: prior authorisation for a transfer of control of a space object. |
| Anchor revenue and terminationA government anchor contract is only as good as what the government pays if it walks away. | ESA may terminate without fault, taking over work in progress at a fair price and indemnifying losses, including the part of lost profit attributable to termination. | FAR termination for convenience: costs and a reasonable profit on work done, capped at the contract price. Funded Space Act Agreements can be ended with less protection. | UK MOD: break on notice with an indemnity for unavoidable loss, capped at the contract price; implied termination rights under the Procurement Act. France: State may terminate in the public interest, with compensation. |
By jurisdiction
ESA and EUESA and EU space contractsESA is an intergovernmental agency, not an EU body.United StatesUS space contracts and licensingCommercial launch and reentry are licensed by the FAA under 51 U.S.C.UK and FranceUK and French space contracts and licensingIn the UK, the Outer Space Act 1986 licenses UK persons' space activities abroad and the Space Industry Act 2018 licenses spaceflight and spaceports in the UK, with the Civil Aviation Authority as regulator.
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General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.