Questions from legal teams, answered.

Can our lenders take security over our launch, operating and spectrum licences?

Usually not directly. Launch, operator and spectrum licences are personal to the holder and usually cannot be charged, so lenders lend against the company that holds them.

That makes the transfer rules the real question. The FCC must approve an assignment of a licence or a transfer of control of the licensee, and UK Outer Space Act licences transfer only with written consent. A sale of the company, or an enforcement by lenders, can need consent from several regulators.

Agree early which group company will hold each licence, since moving a licence later needs consent.

Licence to launch and operate · Change of control and transfer · Security over satellites

A starter question from the editor

What happens to our anchor contract if the agency walks away?

It depends on the buyer. 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.

Under a US FAR contract, termination for convenience pays costs and a reasonable profit on work done, capped at the contract price. Funded Space Act Agreements can be ended with less protection.

Lenders size debt and buyers value revenue on the termination compensation, not the headline value, so negotiate the compensation formula, especially for capital invested up front.

Anchor revenue and termination · Government anchor contracts

A starter question from the editor

Why do lenders ask about the cross-waivers in our launch contract?

Because a missing waiver leaves a claim that insurance may not cover. Cross-waivers stop claims between the launch provider, the customer, their contractors and the government, so everyone bears their own losses.

In the US they are statutory: FAA licences require reciprocal waivers between the licensee, its contractors and customers, and the government. In Europe and the UK they are contractual, in launch and hosting contracts.

Check who counts as a related party covered by the waiver, the carve-outs for wilful misconduct, and whether it covers loss of the satellite itself or only third-party damage.

Cross-waivers · Launch services agreement checklist

A starter question from the editor

What do FCC milestones mean for a satellite financing?

Spectrum rights are often the most valuable asset in a satellite business, and missed milestones can cost the licence. Under the FCC's Part 25 rules, a geostationary satellite must be in service within five years; a non-geostationary system must deploy half the constellation in six years and the rest in nine, backed by a surety bond.

Lenders and buyers check the milestone schedule against the supply and launch contracts, which should line up with the milestone dates. Relief and extensions are for the regulator, not the contract.

Spectrum and ITU filings · Spectrum as collateral

A starter question from the editor

Who owns the IP under an ESA or EU programme contract?

Under ESA contracts the contractor owns the IP, ESA and the participating states get access rights, and ESA can require assignment if the contractor fails to register or exploit it. Under EU programmes, the Union owns assets created under them, with exceptions.

In the US, FAR 52.227-14 gives the government unlimited rights in data first produced under the contract, with protection for limited rights data and restricted software. Mark data carefully: unmarked data can default to unlimited rights.

IP and data rights · Contract library

A starter question from the editor