Enforced in 1972, the Convention on International Liability for Damage Caused by Space Objects (“Liability Convention / Convention”) aims to hold nations accountable for the activities carried out by governmental and non-governmental entities of a particular nation. The Convention is a natural extension of Article VII of the Outer Space Treaty, which says that each state that launches or procures the launching of an object into outer space, and each state from whose territory or facility an object is launched, is internationally liable for damage to another state party to the treaty or to its natural or juridical persons by such object or its component parts on the earth, in air or in outer space.
India, being a signatory to the Convention is obligated to follow the roles and responsibilities that this Convention puts on every state party. This means the Indian state would be liable if any actions of a governmental entity (ISRO, DRDO, etc.) or a private entity which operates in the Indian territory (Agnikul, Dhruva, Skyroot, etc.) causes any damage to any nation other than India.
Some of the key provisions of the Convention are as follows:
1. Liability for Compensation (Article II & III): A launching state is absolutely liable (i.e. liable even in case there is no negligence or fault on part of the state) to pay compensation for damage caused by its space object on the surface of the earth or to aircraft flight. In case the damage is caused anywhere else except the surface of earth (i.e. outer space), liability arises only if fault is established.
However, it is pertinent to note that as per Article VI, a state can be exonerated from absolute liability if it established that the damage was caused due to gross negligence or act or omission done with intent to cause damage on the part of the claimant state or of its natural or juridical persons. The chance to exonerate from liability is not provided in case other international space treaties are not adhered to by the launching party.
2. Joint & Several Liability (Article IV): The Convention states that when damage occurs in space involving two launching states’ space objects and affects a third state:
· If the damage to the third State occurs on Earth or to aircraft, the first two States are absolutely liable.
· If the damage occurs to the third state’s space object or onboard persons/property in space, liability is based on the fault of either of the first two states.
In such a case, compensation is divided between the two states based on their degree of fault. If fault cannot be determined, they share the burden equally.
3. Indemnification (Article V): As per this provision, states that jointly launch a space object are jointly and severally liable for any damage caused. A launching State that pays compensation can seek reimbursement from other participants in the joint launch, and they can agree among themselves on how to share financial obligations. However, such agreements do not affect the injured State’s right to claim full compensation from any of the liable states.
4. Limitation (Article X): Any claims by the claimant state must be made within 1 year of the date of occurrence of the event. However, the provision provides that if the claimant state does not know the occurrence of the event or is not able to identify the liable state, the period of limitation can be extended which shall not be more than 1 year from the reasonable date when the state could be expected to gather information of the event.
5. Alternate Remedies (Article XI): This Convention does not require any prior exhaustion of local remedies before claiming liability on an international level. Further, it does not prohibit any action against the launching state in their local courts, tribunals, or agencies. However, same claims cannot be made both on local and international level.
6. Obligation in case of Wide-Scale Danger (Article XXI): The Convention states that if the damage caused by a space object presents a large-scale danger to human life or seriously interferes with the living conditions of the population or the functioning of vital centres, the states parties, and in particular the launching state, shall examine the possibility of rendering appropriate and rapid assistance to the state which has suffered the damage, when it so requests.
Real Life Application of the Convention
One of the most well-known applications of the Liability Convention has been The Cosmos 954 incident which occurred in 1978 when a Soviet satellite, equipped with a nuclear-powered reactor, malfunctioned and re-entered earth’s atmosphere, scattering radioactive debris over a large area of Canada. The debris caused environmental contamination and required an extensive cleanup operation by Canada. Canada filed a formal claim against the Soviet Union for compensation of $6 million, citing the Liability Convention and claimed costs for the cleanup, environmental remediation, and related expenses. After negotiations, the Soviet Union agreed to pay $3 million Canadian dollars as a settlement, acknowledging its liability under the Convention.
Scenario for an Indian Space Startup
As more Indian private players enter the space sector, it is pertinent to look into an example in the Indian context. If an Indian satellite launched and operated by a private player named ABC falls in the USA due to technical malfunction, the Liability Convention would hold India liable as it is the launching state. Provisions like Absolute Liability, Compensation, Indemnification would clearly apply. The USA would rightfully claim compensation from India for damages caused, using diplomatic channels as per the Convention.