New Tool Eases Regulatory Burden for Space Startups

Attorneys with Washington-based Aegis Space Law developed the Space Regulatory Calculator. Aegis attorneys also teach at the Association of Commercial Space Professionals Space Regulatory Bootcamp. Credit: Aegis Space Law

SAN FRANCISCO – Aegis Space Law has introduced a free online calculator to help U.S. space startups navigate the intricate regulatory landscape they face.

Space Regulatory Calculator Launch

On June 4, Aegis Space Law unveiled the Space Regulatory Calculator, an innovative tool designed to assist early-stage space companies in complying with various space-related regulations. These regulations emanate from multiple federal agencies, including the Commerce Department, Federal Aviation Administration, Federal Communications Commission, National Oceanic and Atmospheric Administration, and the State Department.

“Aegis works with many space startups,” explained Bailey Reichelt, Aegis Space Law partner and co-founder. “The common issue is that they don’t prioritize regulations until their engineering and financing are sorted out. Unfortunately, regulatory timelines can be significantly longer than other timelines.”

Reichelt, who developed the Space Regulatory Calculator alongside Aegis partner Will Lewis, emphasized that founders should consider regulatory approval as early as the design and fundraising stages. This proactive approach could optimize the chances of business success.

Avoiding Costly Mistakes

Neglecting regulatory considerations early can result in expensive and time-consuming errors. For instance, a satellite company might choose a foreign antenna array for its cost and compatibility without realizing that its operating frequency could entail a “lengthy and expensive regulatory burden,” Reichelt noted.

Moreover, existing Federal Acquisition Regulations sometimes prohibit foreign-sourced components for certain contracts. “Such setbacks are common when companies are unaware of applicable regulations,” Reichelt added.

Providing Accessible Legal Guidance

Traditionally, space companies have relied on attorneys to identify relevant regulations. However, many new space companies cannot afford “the sophisticated legal advice needed to navigate these numerous agencies,” Reichelt said. This financial strain leaves companies vulnerable to costly regulatory missteps that can threaten their viability.

“It’s unreasonable for a company with no cash flow to spend tens of thousands of dollars on legal fees before they even have paid employees,” Reichelt stated. “If we want the space industry to thrive and maintain the U.S. technology sector’s global leadership, we must reduce legal and regulatory barriers across the board.”

The Space Regulatory Calculator aims to help startups determine the necessary licenses and permits, estimate approval timelines, and predict associated costs for regulatory compliance. For instance, a small business planning to launch its first satellite might learn that it needs to begin planning at least two years in advance to secure the required licenses before launch, according to a news release.

Ongoing Updates and Education

Aegis attorneys will continue to update the Space Regulatory Calculator as regulations evolve, ensuring its continued relevance and usefulness. Additionally, Aegis Space Law has played a significant role in establishing the nonprofit Association of Commercial Space Professionals. Aegis attorneys also contribute their expertise by teaching at the Association’s Space Regulatory Bootcamp.

The launch of the Space Regulatory Calculator represents a significant step toward demystifying the regulatory process for space startups, providing them with a critical resource to navigate the complex web of U.S. regulations. This initiative underscores Aegis Space Law’s commitment to fostering innovation and reducing barriers in the burgeoning space industry.

#SpaceStartups #AegisSpaceLaw #RegulatoryCompliance #Innovation #SpaceTech

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