PEL - part 1 Flashcards

for the January 2021 exam

1
Q

**We do not have LO’s from the lecture on Strategy in the Space Sector, these questions are guesses at what could be testable.**

Briefly explain the concepts of Space 1.0, Space 2.0, Space 3.0, Space 4.0 and give examples.

A

Space 1.0 was Astronomy. Example: Copernicus, Galileo, and early astronomers.

Space 2.0 was Competition. Example: US and Soviet space race.

Space 3.0 was Cooperation. Example: International space station with Russia, US, EU, Japan.

Space 4.0 is Participation. Example: New Space participation by agencies and businesses in partnerships. Public-private partnerships plus commercial-only partnerships.

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2
Q

**We do not have LO’s from the lecture on Strategy in the Space Sector, these questions are guesses at what could be testable.**

What are three general categories of ESA programs?

A

Mandatory programs.

Optional programs.

3rd party programs by non-member states.

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3
Q

**We do not have LO’s from the lecture on Strategy in the Space Sector, these questions are guesses at what could be testable.**

What are the 4 pillars of ESA programs from the Space 19+ ESA Ministerial Council meeting?

A

Science and Exploration

Safety and Security

Applications

Enabling and Support

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4
Q

**We do not have LO’s from the lecture on Strategy in the Space Sector, these questions are guesses at what could be testable.**

Give examples of Earth Observation for commercial use.

A
  1. Disaster management.
  2. Water monitoring (for power generation and farming).
  3. Soil moisture and drought monitoring.
  4. Precision farming: Crop monitoring, livestock tracking, land use.
  5. Monitor illegal deforestation, prevent competition.
  6. Naval vessel identification and detection. Prevent piracy and illegal trafficking.
  7. Decision support for autonomous naval vessels.
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5
Q

Frame economic historical context for emergence of
space development and the possibility of space
resources to remove resource constraints.

A

Early manufacturing and production boomed due to exploitation of resources, including cheap labor. “Profit extraction.”

Later, “Maturing economies (in the 1960s and 70s) created contradiction.” They needed to re-invest heavily in R&D which decreased profits.

The result was a decrease in R&D in later decades with increased profit.

Now, EU has less industry and US has much less.

Resources are more expensive nowadays, also, creating relative scarcity.

We could recreate the setting where there was cheap exploitation of resources if we mine asteroids for raw materials. This would “remove the resource constraints.”

Developing new technologies for the space industry could also open up new economic growth from new innovations.

“Not a matter of economic capacity.” It’s a matter of political will to invest in space research and space industry.

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6
Q

Evolution of space policy reflecting growing economic
and technological capacity, number of players, and
emergence of private space enterprise and the
prospect for cost reductions to drive private space
enterprise towards economic feasibility of use of
outer space resources
.

A

Evolution of Space Policy:

Modern space history begins with the International Geophysical Year, 1957-58. US announces there the plan to launch satellite in next few years, then Sputnik is launched in 1957.

Outer Space Treaty 1967 considered the paper embodiment of the spirit of the International Geophysical Year.

Moon Treaty 1979, limited by parties with mining interests.

Short-term private interests: Satellite manufacturing, satellite services, ground equipment, and launch facilities.

Long-term private interests: Crewed and robotic space exploration; Energy, mining, and processing, space tourism.

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7
Q

What is the interaction of state and commercial interests in space?

A

–Participation in a market depends on procurement law. Procurement is the buying of goods or services by the public sector from the private sector. The European Union has specific directives on public procurement. In the US and Canada, procurement is based on individual contracts, legally. The space market is largely based on public demand in Europe.

Procurements for:

–Research and development.

–Manufacturing.

–Ancillary services, like maintenance, logistics, engineering.

–Satellite operations and servicing.

–Satellite and experiment launching.

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8
Q

How do legal rules determine commercial business models?

A

–Licensing and authorization by space agencies to do business.

–Jurisdiction and applicable rules of law, either national or international (EU).

–Export control laws may cause constraints: ITAR/dual use, embargos.

–IT laws and telecommunications laws may apply from national or international regulating bodies.

–Contract law will depend on national or international laws.

–Cartel and monopoly laws protect businesses trying to enter a a market. Prevent price fixing, dumping prices, blocking markets, and limiting supplies.

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9
Q

How do contracts determine business and risk management?

A

First, the types of contracts:

–Contracts for studies, like risk assessments or regulation reviews.

–Consultation contracts.

–Research and Development.

–Supply contracts for hardware or software.

–Contracts for ancillary services, like maintenance.

Second, how they determine risk management:

The contractual chain of risk allocation:

Customer —> Main Contractor (“the prime”) —> Subcontractor (“the sub”) —–> Lower tier Subcontractor (“lower sub”).

The main contractor is fully liable for the sub, and the sub is fully liable for the lower sub.

Penalty provisions can protect from failure to perform can and breach of contract can lead to claims for damages. Arbitration is also possible.

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10
Q

What are the notions of responsibility and liability in the space sector?

A

This LO was not mentioned at all in the lecture. The words responsibility and liability do not appear at all in the lecture notes.

This is a decent answer from https://www.spacelegalissues.com/responsibility-and-liability-in-space-law/

It says responsibility is more binding and a company or state is responsible for breach of a contract. Meanwhile, liability can have consequences only for damage.

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11
Q

**This is not an LO but seems like good testing material from the lecture**

What is the difference between an agreement and a contract?

A

–An agreement is an understanding or arrangement between two or more parties. Example: Satellite Service Level Agreement (SLA) or Technical Assistance Agreement (TAA).

–A contract is a more specific agreement that has terms and conditions and is enforceable in court.

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12
Q

**Non-LO possible question that could be used as an example for answering an exam question.**

What are the legal and business factors that are specific to Europe?

A

–70% of the market is operated by a few large companies, like OHB, Airbus, Thales, FINMEC.

–European market is highly dependent on public agency demand.

–“Cyclical” demand of commercial satellite operators, like SES, EUTELSAT, INMARSAT, Hispasat. Demand comes and goes.

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13
Q

What are the different basic types of Intellectual Property?

A

Copyright: Excludes other people from reproducing the work. Examples: Books, music, performances.

Patent: Excludes others from making, using, or selling the result of the idea. Example: Inventions.

Trademark: Prevents others from using that mark to identify their goods and services. Example: Trademark, service mark, company name, logos.

N.B.: Industrial intellectual property is a special category of IP that is created for industrial use. It includes all of the above but is specific for industry.

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14
Q

What is the “confusion” over copyrights and patents?

A

The differences between them:

Copyright:

It represents an exclusive right to reproduce, disseminate, and reproduce a work with came from the personality of the author. It has a moral right to respect the work, and is there to protect culture and creativity. It is for life of the author plus 70 years. Copyright protects “originality”, which is subjective.

Patent:

Patents are for inventions. Inventions do not include: scientific discoveries, scientific theories, mathematical models, aesthetic creations, schemes, methods, computer programs, and presentations of information.

Inventor’s rights: It rewards the creative effort of the inventor. It gives the exclusive right to use an invention for the purpose of manufacturing industrial products for circulation for the first time. The rights can be used directly or by licensing the right to third parties. Unlike copyright, an inventor of patent must put the patent to “work” either him- or herself, or by licensing to a third party. “No use, no protection.”

Legal rules for patents: Criteria for registration are novelty (not already public knowledge), new inventive step (not obvious to a reasonable worker), industrial applicability (any kind of industry), and “unity” of the invention (has to be one invention or closely related set of inventions). Example of patent law is the Paris Convention for the Protection of Industrial Property. The term of the patent is 20 years.

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15
Q

What is the particular role of Intellectual Property in space?

A

IP here follows the concept of territoriality. The Outer Space Treaty protects jurisdiction over property, including intellectual property. Therefore, who owns the intellectual property depends on the source and the contract between collaborating parties on a space project.

Different types:

Background IP: This is the IP that the partners brought into the project.

Foreground IP: This is the IP that is generated during collaboration on the project. The ownership and limits will depend on the contract.

Post-ground, or post-development, IP: This is the IP that is generated after the project ends, or research contract ends. Ownership and limits are determined by the contract.

IP items possible: Space objects, subsystems, designs, plans, documentation, patents, trademarks, logos, and even business know-how.

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16
Q

Describe the concept of licensing intellectual property for space.

A

Patents must be either put to work by the inventor or licensed to third parties to work the patent. Patents are not protected if not used. “No use, no protection.” The licensed third party has the right to use the patent like the inventor.

17
Q

L25 - Describe the main categories of economic effects of space
activities and explain the economic return they generate.

A

Two points of view

Private perspcective:

Ex. Elon Musk and SpaceX

Easier to calculate: Return = gains/investment.

Public perspective:

Ex. point of view of the whole society

More difficult to calculate: Return = Benefits/public funds invested.

Return for all of society could be Return = Benefits/ public and private funds invested.

Economic Return Generated:

Private is monetary.

Public is:

“Space is good for society”, as in:

Independence, security, prestige

Growth/industrial development

“Social” development: education, health, environment, quality of life

Scientific development for all mankind

18
Q

Differentiate between the numerous existing studies in the
corresponding field.

A

Main categories of impact:

  1. Direct Industrial Effects
  2. Inter-sectorial flow approach. Money will change hands from contractors and from employees to the public.
  3. Value chain approach. Investments in the infrastructure will have benefits to the companies and end-users but return is difficult to quantify. Like EO infrastructure with benefits to end users.
  4. Spinoffs
    1. Intangible infrastructure created during exploitation and construction of space activities
  5. Direct social effects
19
Q

Identify the most relevant approaches to economic return given
the type of space activities/programs at stake:

A

Approaches to evaluation:

Cost-benefit analysis, microeconomic approach.

Costs and benefits for a large scope of stakeholders

Tip of the iceberg analogy, many benefits not seen.

Limited by not knowing the “fatherhood” of some benefits and not being able to identify or quantify all benefits.

Micro-based learning approach

The BETA method approach.

Direct interiews. Identify knowledge generation and appropriation.

Society has “learning processes” as gains.

There are services and gains as direct benefits and new knowledge, competence, and organization as indirect benefits.

Limitations are that it’s time consuming with interview and the results can be ambiguous.

Bibliometrics/patents statistics

Search for identifiable links to benefits such as number of new space patents or the number of citings of space patents.

Limitations are due to definitions chosen, such as definition of patents, and time consuming.

20
Q
A
21
Q

1) List the main elements of export control regulations.

A
  • Export: transfer, shipment or transmission of regulated goods
    • Regulations employed on a national level to protect national security and interests
  • Elements:
    • Control List
      • What is covered under the export control regulations
      • Munitions v. Dual-Use items
    • Authorization Procedure
      • Export Country regulations
        • ITAR & EAR regulations
      • Import Country regulations
    • Repercussions
      • Lack of awareness and certainty
      • Civil and criminal sanctions / liabilities
      • Need for advance planning
  • Export Criteria
    • End User – Who is going to use the item or product
    • End Use – known in order to determine whether it is munitions or dual-use
    • Destination Country
22
Q

2) Distinguish between munition and dual-use items.

A
  • Munition:
    • Weapons/Militarization. Use of space-based assets to enhance effectiveness of conventional methods or for military purposes
    • Munitions List includes
      • Launch vehicles
      • Guided missiles
      • Ballistic missiles
      • Rockets
      • Torpedoes
      • Bombs
      • Mines
      • Non-nuclear warheads
      • Associated data on any munitions item
  • Dual Use Items:
    • have use for both civil and military applications
    • Dual-Use Items List includes:
      • Satellites:
        • Imaging, communication, GNSS electronics, receivers
      • Air launch platforms
      • Spacecraft components
      • Composite structures for propulsion systems / space vehicles
      • Fuel
      • Telecommunications & Information Security
        • ONLY items that don’t fall under military application
  • ITAR – International Traffic in Arms Regulation
    • Primarily defense oriented (munitions)
    • Munitions need a specific reason for why it is being exported
    • Has a list that imposes additional sanctions based on export country
      • Makes exporting more difficult
      • Prohibition applicable to certain countries
  • EAR – Export Administration Regulations
    • Includes a commercial control list and commercial interests
    • Dual-use items – safe to export unless proven otherwise
    • Much more flexible on exports than ITAR
23
Q

3) Understand the impact of export control in the space sector.

A
  • Export Control is tense, lacks transparency and has reservations
    • Increased demand through commercial growth, privatization & synergies
    • More capabilities means more innovation
  • High costs and formalities
    • Complicated process
    • Lack of awareness
  • Cooperation
    • Choice of suppliers (off-the-shelf products), manufacturers, customers
    • National competitiveness
    • Trade
    • Scientific cooperation
  • NewSpace and small-scale projects
  • Large programs and companies
  • Countries under restriction by export control and their own capabilities
24
Q

4) Identify the main steps of the export procedure

A
  • Almost everything for export requires initial permission and a license
  • Export Control Preliminary Steps:
  1. Find out if there is an export involved
  2. Find out if you need a license
  3. Find out how to get the license
  4. Determine what your activity is
  5. Determine who is involved in the activity
  6. Determine where the items, technology and involved persons are located
  • Export Control Steps:
  1. Define & design export product
  2. Apply for export authorization
  3. Proceed with activity
  4. Oversee that all export requirements are met at all stages
25
Q

1) Understand the legal issues arising from commercialization and privatization of space activities.

A
  • In case of launch failure, the launching state is liable for damages, not the private company
  • Authorization/Supervision
    • Outer Space Treaty Article VI
      • international responsibility for national activities in space; also covers private enterprises and individuals
      • The appropriate state must authorize and continuously supervise, often done via national law & licensing
  • Third Party Liability
    • Outer Space Treaty Article VII & Liability Convention
      • Liability of the launching state for damage caused by its space object
      • The state is liable for damage, needs to recover from the company
  • Registration
    • Outer Space Treaty Article VIII & Registration Convention
      • State of registry retains jurisdiction & control over space object/personnel
      • The state must register, needs information from the company
26
Q

2) Describe rationale for and commonalities of national space laws.

A
  • Ensure that private entities do not violate the state’s obligations
  • Reflect policy choices
    • States ask private companies to take out insurance upwards of 60 million (Europe) or 500 million (United States)
  • Licensing Checklist:
    • Safety
      • Technical documents provided
      • Compliance with debris mitigation and environmental standards
    • Financial Health
      • Ensure the company is financially stable
    • National Security & Foreign Policy
      • Ensure it is not a breach of security or acting in any capacity (i.e. spying) that violates foreign policy
  • Licensing Conditions
    • Liability Conditions
      • Insurance caps or recourse
      • States can recover from the company
    • Registration parameters to be provided
    • Audit procedures and processes
    • Fees & Timing
      • Discussing with government well before the date of launch the exact obligations that must be complied with
    • Conditions for transfer, change of status, revocation and penalties
27
Q

3) Identify some legal issues of space resources utilization.

A
  • OST Art. I: Freedom of Exploration and Use
    • For the benefit of and in the interests of all countries
    • Accordance with international law
    • Free access to all areas of celestial bodies
  • OST Art. II: Non-appropriation
    • Space not subject to national appropriation
  • OST Art. IV: use for peaceful purposes
    • No nuclear weapons/WMD
    • Moon – exclusively peaceful purposes
    • Resource activities MUST comply with this
  • OST Art. VI: State responsibility
    • International accountability and responsibility for national activities
    • Nations might need to adapt their framework to cover activities in space
    • Non-governmental entities much be authorized and supervised
  • OST Art. VII: Liability for damage
  • OST Art. IX: no harmful interference
    • Due regard and consultation
    • No contamination of space and no adverse changes to Earth environment
    • Resource activities must be monitored
  • OST Arts. IX-XII – Cooperation
    • Promote international cooperation
  • Moon Treaty
    • Only treaty to address commercial use
    • Create and international management regime to authorize and manage celestial access and resources
      • Rational management, expansion opportunities, orderly and safe development, equitable sharing in the benefits, special consideration for needs of developing countries and national interests
  • Waste on Celestial Bodies
    • Debris mitigation and orbital debris
    • Protection of Heritage sites (i.e. Neil Armstrong’s footprints)?
    • Protection of Operations?