DLA Piper, a global law firm, has announced the launch of a dedicated space law practice to cater to the burgeoning space exploration industry’s legal needs. Following in the footsteps of firms like Mayer Brown and Hogan Lovells, DLA Piper will establish a global team specializing in advising the sector on matters such as regulatory compliance, intellectual property rights, and dispute resolution. This new practice will be led by Christian Ford, a former US Department of Defense attorney who is now based in Houston.
This strategic move comes shortly after Wilson Sonsini, a Silicon Valley law firm, hired Curt Blake, the former CEO of Spaceflight, to establish a space industry practice group. The objective is to capitalize on the rapidly expanding space sector, which analysts estimate was valued at $546 billion in 2022, primarily due to a surge in private investments.
Frank Ryan, the global co-chair of DLA Piper, the third-largest US law firm by revenue, noted, “Years ago, it would take the financial capabilities on the scale of a sovereign to be able to really enter space. That’s not the case anymore.” This statement reflects the decreasing launch costs and the increasing accessibility of space exploration, leading to numerous space start-ups going public in recent years through special purpose acquisition companies (SPACs). Citi analysts predict that by 2040, the industry could generate an annual revenue of $1 trillion.
Nonetheless, the space sector faces challenges, with some space stocks experiencing declines as competition intensifies, and fundraising becomes more challenging. In the first half of 2023, private investment in the sector totaled $8.2 billion, marking a more than 40% decrease compared to the same period last year, according to Space Capital, an early-stage venture capital provider.
A significant challenge for companies like SpaceX, Virgin Galactic, and Blue Origin is the uncertain legal landscape. Much of the international space law dates back to the 1960s and 1970s and primarily focuses on regulating states rather than private enterprises. “The regulatory landscape is really nascent and is still forming,” noted Christian Ford. “It’s going to be a while before there is a definite or concrete legal framework.”
Among the unresolved legal issues are those related to space debris and the regulations governing resource extraction from celestial bodies. With over a hundred projects planned for lunar exploration, there is currently no established framework to address issues such as conflicting interests at specific sites or the extraction of valuable resources like water and minerals.
Timiebi Aganaba, a space law expert and assistant professor of space and society at Arizona State University, explained that while these issues are important, they are unlikely to become pressing concerns in the next five years. Instead, matters such as collision avoidance are expected to take center stage as countries like China, India, and the United Arab Emirates work on drafting competing space laws.