Intellectual Property Strategies for Space Technologies – Patent or Trade Secret?

Posted on September 18, 2024

Credit: Nick South and Shivansh Dhasmana, AA Thornton.

The rapid evolution of space technologies, from commercial activities on the International Space Station (ISS) to future settlements on the Moon and Mars, underscores the critical need for robust IP protection strategies both to incentivise and reward technological developments. While IP laws on Earth are well-defined, offering clarity and security for inventors and owners, the jurisdictional boundaries in space could be more precise, raising questions about ownership, rights and governance.

Unlike traditional terrestrial technologies, the unique challenges of enforcing intellectual property in space technologies require not only an understanding of the technical nature of the inventions but also the legal frameworks governing space. This involvement of multiple jurisdictions and operations in complex environments highlights the crucial role of expertise in this field.

The cornerstone of international space law is the Outer Space Treaty of 1967, which asserts that space and celestial bodies are not subject to national appropriation. However, objects launched into space remain under the jurisdiction of the country where they are registered. This raises important considerations for IP protection: if a space object is registered in the UK, do UK IP rights cover that object in space?

Given the complex jurisdictional issues in space, companies developing space technologies must adopt a multi-jurisdictional IP strategy. This strategy may involve seeking IP protection in multiple countries, especially those actively engaged in space activities or where potential competitors may operate, and is a key step in protecting innovations. As part of this strategy, it may be prudent to consider obtaining protection in countries where the technology could be used, licensed or developed by third parties. For space-based inventions, additional factors include where the invention will be launched, the terrestrial components involved and the applicable laws for objects already in space.

Enforcing IP rights for space-based inventions is a formidable task, laden with the unique challenges of establishing infringement in the vast expanse of space. For instance, UK patent law defines infringement to include the acts of making, using or importing a patented product within the UK without permission. This is straightforward for objects manufactured in the UK and later launched into space but more complex for inventions that form a patented system when they are in orbit. The physical distance and international nature of space activities make monitoring and enforcing IP rights challenging. For example, identifying and proving that an invention is being used unlawfully on a space station or satellite requires sophisticated tracking and legal strategies.

Trade Secrets or Patents?

Trade secrets and contractual agreements, such as non-disclosure agreements (NDAs), offer one way to protect space-based inventions. These methods can keep sensitive information confidential without requiring public disclosure. Trade secrets can remain protected indefinitely if the information remains secret and continues to provide a competitive advantage. This can be particularly useful when public disclosure through the patent process is undesirable. Ensuring that robust confidentiality agreements bind employees, contractors and other partners can help safeguard sensitive information.

However, trade secrets come with significant risks. If a trade secret is disclosed intentionally or accidentally, it loses its protection. Additionally, enforcing confidentiality across multiple parties in a space mission can be challenging. The involvement of multiple countries and private entities in space missions complicates jurisdictional claims and enforcement mechanisms.

In contrast, patents provide several key benefits; in particular, they grant exclusive rights to inventors, allowing them to prevent others from making, using or selling their inventions within the jurisdictions where the patents are granted. Once a patent is granted, it protects the invention even if others independently develop the same technology. This legal protection may be important in space technology’s competitive and high-stakes environment, particularly where innovations are often groundbreaking, and the risk of independent development is high.

The process of obtaining a patent involves the public disclosure of the invention, which can demonstrate a company’s innovative capabilities and attract investors. This transparency can help establish credibility and trust in the market. Patents, as commercial assets, not only provide security for investments but also serve as a beacon for potential investors, thereby enabling licensing opportunities and crucial funding for commercialising space technologies.

In this complex field, it is critical to adopt an IP strategy that provides protection appropriate to the circumstances, and helps to ensure commercial success for innovators.

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