Scotland’s Ambition to Become Europe’s Leading Space Nation: A Legal Perspective by Jamie Watt

Scotland Aims to Become Europe’s Leading Space Nation with New Space Strategy

In October 2021, the Scottish government unveiled its ambitious Space Strategy, outlining its goal to establish Scotland as Europe’s premier space nation. With plans to develop a dedicated launch capability by summer 2023 and the construction of five spaceports across the country, Scotland is targeting a £4 billion share of the global space market and aims to create 20,000 jobs by 2030. This ambitious target reflects the sector’s impressive 12% year-on-year growth, far surpassing the UK’s 3% growth rate.

Despite its smaller size, Scotland boasts an average 40% lower operating cost compared to other regions in the UK and is currently a leading manufacturer of satellites, second only to California. However, even in this dynamic and innovative sector, the laws of space, commonly referred to as “space law,” still apply.

Space law encompasses a wide range of legal considerations, including regulations governing the manufacturing, liability, research and development, intellectual property, and operation of space-related activities. As the space industry is inherently international, operators must navigate complex legal frameworks related to international trade, including Incoterms, trade controls, sanctions, anti-bribery laws, and competition regulations.

Edinburgh is emerging as Europe’s space data capital, attracting significant research funding and fostering a thriving ecosystem for data-based services. Legal requirements surrounding data generation, storage, sharing, ownership, and regulation must be carefully addressed to ensure compliance and maximize the value of data assets.

The UK Space Agency recently announced £2.7 million in funding for 13 space technology projects, with a focus on satellite communications. Scottish-based companies like Orbex and Skyrora have secured funding through ESA initiatives, highlighting the importance of strategic partnerships in advancing space technology development.

As the commercialization of space becomes more accessible to the private sector, the protection and ownership of innovation are paramount. Patents play a crucial role in safeguarding technology and operating across national boundaries, raising questions about the applicability of patent laws in space. The 1966 Outer Space Treaty established guidelines for jurisdiction and control over objects launched into space, influencing how patents are granted for space technologies.

Navigating the legal complexities of space presents unique challenges and opportunities for stakeholders in the industry. With Scotland’s ambitious Space Strategy and growing investment in space technology, the country is poised to lead the way in Europe’s evolving space sector.

Jamie Watt, a partner at Harper Macleod LLP, provides insights into the legal implications of Scotland’s space ambitions and the importance of legal considerations in the rapidly expanding space industry.