The Act on Launching Artificial Satellite and Launch Vehicle and Control of Artificial Satellite (Act No. 76 of 2016) (Space Activities Act) serves as the basic law for Japan’s space industry.
Regarding the Space Activities Act, on May 21, 2025, at the 118th meeting of the Committee on National Space Policy, a committee member expressed, “Given that a wide range of space activities are expected to emerge in the future that cannot be addressed under the current Space Activities Act, I hope that the government will submit the bill to amend the Space Activities Act to the next ordinary session of the Diet without delay.”
In addition, at the 32nd meeting of the Strategic Headquarters for Space Development May 30, 2025, Prime Minister Ishiba stated, “In order to respond swiftly to the development of new forms of space transportation by private companies, we aim to submit the bill to amend the Space Activities Act to the next ordinary session of the Diet.”
Thus, the Basic Policy 2025 states the government’s intention to submit the bill to amend the Space Activities Act to the next ordinary session of the Diet, which is expected to convene Jan. 24, 2026, and last 150 days, with the goal of boosting a wide range of space activities, including new forms of space transportation by the private sector. See our GT Advisory on the Basic Policy 2025.
This GT Advisory provides an overview of the possible amendments to the Space Activities Act, which will contribute to the development of the Japanese space industry, and recent moves toward amendment.
I. Overview of Space Activities Act
The Space Activities Act, which took effect in November 2018, serves as the basic law for Japan’s space business. It provides (i) a license related to launching an artificial satellite and launch vehicle; (ii) a license related to the control of an artificial satellite; and (iii) third-party liability.
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Items |
Details |
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Definitions |
Artificial satellite |
An artificial object that is used by putting it into Earth’s orbit or beyond, or by placing it on a celestial body other than Earth. |
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Artificial satellite and launch vehicle |
An artificial satellite and a vehicle for launching it. |
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Launch site |
A facility equipped to launch an artificial satellite. |
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Launching artificial satellite and launch vehicle |
A person using a launch site that they or another person manages and operates to load an artificial satellite onto a launch vehicle, launching and accelerating the launch vehicle until it reaches a certain speed and altitude, then separating the artificial satellite at that point. |
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Launch vehicle fall damage |
Damage caused to human life, body, or property on the ground surface or water surface, an aircraft in flight, or in other flying objects caused by the fall, collision, or explosion of an artificial satellite and launch vehicle in whole or part that has not successfully separated from the launch vehicle after the launch, or by the launch vehicle after the successful separation of the artificial satellite (excluding damage suffered by (i) or (ii) in the course of their duties: (i) employee of the person launching the artificial satellite and launch vehicle; and (ii) person that supplied materials or other goods or services for the launch of an artificial satellite and launch vehicle and that person’s employee). |
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Launch vehicle fall damages liability insurance contract (space insurance contract) |
A contract under which an insurer promises to compensate a person that launches an artificial satellite and launch vehicle and incurs liability to compensate for launch vehicle fall damage (excluding specific launch vehicle fall damage) for that person’s loss, and the policyholder promises to pay insurance premiums to the insurer. |
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Specific launch vehicle fall damage |
Launch vehicle fall damage caused by the fall, collision, or explosion of an artificial satellite and launch vehicle primarily caused by an act of terrorism or any other event such as a significant disturbance of social order caused by a war, riot, or other act of violence. |
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Launch vehicle fall damages liability indemnification contract |
A contract in which the government promises to indemnify the person that launches an artificial satellite and launch vehicle against losses caused by compensating for launch vehicle fall damage for which the person became liable that cannot be covered by a launch vehicle fall damages liability insurance contract or any other means of compensation for launch vehicle fall damage. |
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Artificial satellite fall damage |
Damage to human life, body, or property on the ground surface, water surface, an aircraft in flight, or in another flying object caused by the fall or explosion of an artificial satellite successfully separated from its launch vehicle (excluding damage suffered by an employee of a person implementing the control of the artificial satellite in the course of their duties). |
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License Related to Launching an Artificial Satellite and Launch Vehicle |
License |
A person that intends to launch an artificial satellite and launch vehicle using a launch site located in Japan or onboard a ship or aircraft with Japanese nationality must obtain a license from the prime minister for each launch. |
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Standards for license |
An applicant may obtain the license related to launching an artificial satellite and launch vehicle only if all of the following conditions are met: (i) the design of the launch vehicle complies with the standard specified by Cabinet Office Order as the safety standard concerning a launch vehicle for ensuring the safety of the vicinity of the trajectory and launch site of the launch vehicle (ii) the launch site complies with the standard specified by Cabinet Office Order according to the type of launch vehicle, which ensures the safety of the vicinity of the trajectory and launch site of the launch vehicle (iii) the launch plan states the means of ensuring the safety of the vicinity of the trajectory and launch site of the launch vehicle, and that the applicant has sufficient ability to execute the launch plan (iv) the purposes and methods of use of the artificial satellite loaded on the launch vehicle comply with the basic principles of the Basic Space Act (Act No. 43 of 2008) (basic principles) and are not likely to have an adverse effect on the smooth implementation of the conventions on the development and use of space. |
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License Related to the Control of an Artificial Satellite |
License |
A person that intends to implement the control of an artificial satellite using an artificial satellite control facility located in Japan, onboard a ship or aircraft registered in Japan, or onboard an artificial satellite prescribed in Cabinet Office Order as those over which Japan has jurisdiction (referred to below as the “artificial satellite control facility in Japan, etc.”) must obtain a license from the prime minister for each artificial satellite. |
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Standards for license |
An applicant may obtain the license related to the control of an artificial satellite only if all of the following conditions are met: (i) the purposes and methods of use of the artificial satellite comply with the basic principles and are not likely to have an adverse effect on the smooth implementation of the conventions on development and use of space (ii) the configuration of the artificial satellite is not likely to have an adverse effect on preventing harmful contamination of space and public safety (iii) the control plan requires the implementation of measures that are necessary to prevent harmful contamination of space as well as termination measures, and the applicant has sufficient ability to execute the control plan (iv) the details of the termination measures ensure the safety of the vicinity of the artificial satellite’s trajectory and preventing harmful contamination of space |
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Third-Party Liability |
Measures to provide security for damages |
A launch operator that has obtained a license related to launching an artificial satellite and launch vehicle must not conduct the launching of an artificial satellite and launch vehicle for which the license was granted unless it has taken measures to provide security for damages. The “measures to provide security for damages” include (i) the execution of a launch vehicle fall damages liability insurance contract and a launch vehicle fall damages liability indemnification contract on specific launch vehicle fall damages, which can cover an amount specified by Cabinet Office Order, considering the design of the launch vehicle, the location of the launch site, and other circumstances (referred to as the “compensation measures amount”)[1] or (ii) a deposit, which can cover a compensation measures amount, with an official depository. |
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Compensation for launch vehicle fall damage (strict liability) |
A person that launches an artificial satellite and launch vehicle using a launch site located in Japan or onboard a ship or aircraft with Japanese nationality is liable to compensate for launch vehicle fall damage caused by the person related to the launch of the artificial satellite and launch vehicle. |
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Channeling of liability |
Those liable for compensation for launch vehicle fall damage are limited to those who conduct the launching of the artificial satellite and launch vehicle; others (e.g., operator or manufacturer of the artificial satellite) are not liable for such compensation. |
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Launch vehicle fall damages liability indemnification contract (government indemnification) |
The government may execute a launch vehicle fall damages liability indemnification contract with a launch operator under which the government promises to indemnify the launch operator for losses arising from providing compensation where the operator has incurred liability to compensate for specific launch vehicle fall damage (i.e., launch vehicle fall damage that is not covered by a launch vehicle fall damages liability insurance contract), to an extent not exceeding an amount equivalent to the compensation measures amount. In addition to the above, the government may execute a launch vehicle fall damages liability indemnification contract with a launch operator under which the government promises to indemnify the launch operator for losses arising from providing compensation where the operator has incurred liability to compensate for launch vehicle fall damage, in excess of the compensation measures amount, to an extent not exceeding JPY 350 billion. |
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Compensation for artificial satellite fall damage[2] (strict liability) |
A person that implements the control of an artificial satellite using an artificial satellite control facility in Japan etc. is liable to compensation for damage, including artificial satellite fall damage, caused by the person related to the control of the artificial satellite. |
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II. Subcommittee on Review of the Space Activities Act/Interim Report
Since the Space Activities Act took effect in November 2018, technological innovations have enabled the implementation of a wide variety of space activities that the current Space Activities Act does not address. In addition, space business is rapidly developing not only in Japan but in other countries such as the United States, China, the European Union, the United Kingdom, and India, and international competition is intensifying.
To address the diverse range of space activities the current Space Activities Act does not address and to strengthen the international competitiveness of Japan’s space business, the Subcommittee on Review of the Space Activities Act has been convening since September 2024. On March 25, 2025, the subcommittee published an interim report on the basic direction for review of the Space Activities Act (Interim Report).
The Interim Report lists the following issues to consider when reviewing the Space Activities Act:
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Goal |
Overview |
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Responding to Various Space Activities |
Responding to various forms of space transportation |
Establishing a system responding to the following forms of space transportation: · Reusable rocket · Rockoon method · Rocket that puts objects into Earth’s orbit other than artificial satellites (e.g., demonstration phase rocket that does not load any payload) · Suborbital flight · Rocket that does not put an object into or beyond Earth’s orbit (suborbital rocket) · Re-entry · Manned spaceflight and transportation |
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Responding to diversification of artificial satellites |
· Establishing regulations for artificial satellites put beyond Earth’s orbit, such as orbital transfer vehicles, asteroid probes, and lunar transfer vehicles · Establishing regulations for objects that may not be considered “artificial satellites,” such as the orbital insertion stage of the rocket, dummy payload that does not separate from the orbital insertion stage of the rocket, monuments, and capsules for space burials · Establishing procedures and permissions for (i) the transfer of an artificial satellite to another party in Earth’s orbit and (ii) assignment of the control of artificial orbit to another party |
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Strengthening international competitiveness of Japan’s space industry |
Regulations to respond to the internationalization of space activities |
· Regulations for launches conducted outside Japan by Japanese individuals or corporations · Regulations for launches conducted within Japan by foreign individuals or corporations |
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Simplifying and expediting the license procedure |
· Establishing a comprehensive license system · Reviewing procedures for authorization of changes to design and equipment of launch facilities that have obtained a compliance certification · Establishing regulations and procedures for launch sites |
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Securing Safety and Credibility of Space Activities |
Expanding the scope of measures to provide security for damage and government indemnification |
Expanding the scope of measures to provide security for damage and government indemnification to include the following damages: · Third-party damage arising on the ground in connection with reusable rockets and rockets that put objects into Earth’s orbit other than artificial satellites · Artificial satellite fall damage on large or flame-resistant artificial satellites · Third-party damage arising on the ground caused by re-entry |
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Response in the event of an accident |
· Establishing reporting obligations when launch vehicle fall damage occurs · Establishing reporting obligations when artificial satellite fall damage occurs |
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Checking the presence and structure of hazardous materials |
Establishing a system to check the presence and structure of the following items: · Radioactive materials, hazardous materials (weapons, explosives, etc.) · Space object that is not classified and managed as an “artificial satellite” |
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Space object registration procedure |
· Establishing space object registration procedure |
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Below is an overview of the items that may be included in the bill to amend the Space Activities Act.
A. Responding to Various Forms of Space Transportation
1. Reusable Rocket
The Interim Report suggests adding regulations around safe descent and retrieval of reusable rockets, which are not currently included in the Space Activities Act. Conventional rockets are disposable, either dropped into the sea after launch or burned up after reentering the atmosphere from space.
In recent years, reusable rockets have been developed that safely descend onto the ground or sea and are then retrieved and reused. Using reusable rockets may (i) reduce launch costs and (ii) increase the frequency of launches, thus addressing the two primary concerns associated with disposable rockets. In addition, reusable rockets will contribute to achieving the United Nations’ sustainable development goals.
2. Rockoon Method
The Interim Report suggests establishing regulations for launching artificial satellites and launch vehicles using the rockoon method that are equivalent to those for existing launches. The rockoon method is a launch method in which a rocket ascends to a certain altitude using a balloon, and then the rocket is ignited and launched in midair. Because the balloon lifts the rocket beyond an atmospheric layer with strong air resistance, the rockoon method can launch rockets using less energy and at a lower cost. However, balloons are not currently included in the definition of “aircraft” used in Article 4, Paragraph 1 of the Space Activities Act.
3. Rocket That Puts Objects Other Than Artificial Satellites into Earth’s Orbit
The Interim Report proposes redefining the Space Activities Act’s definition of “launching artificial satellites and launch vehicles” to include launching a rocket that either does not have a payload or one from which the payload does not separate from the orbital insertion.
4. Suborbital Flight
The Interim Report considers whether to regulate suborbital flight under the Space Activities Act and what those regulations should encompass, suggesting discussions with domestic and foreign regulatory authorities, private sectors, and other relevant parties.
Suborbital flight is a flight that departs from the ground, ascends to an altitude of approximately 100 km, and returns to the ground without reaching Earth’s orbit. This method may be used in the future for high-speed transportation between two locations, space travel, and microgravity experiments, and the development of a vehicle for suborbital flight is underway. Because suborbital vehicles do not reach Earth’s orbit or beyond, they are not currently regulated by the Space Activities Act. However, some argue that suborbital vehicles should instead be regulated by aviation laws.
5. Suborbital Rocket
The Interim Report considers the necessity and permissibility of regulating the launch of certain suborbital rockets under the Space Activities Act from the perspective of ensuring public safety while maintaining Japan’s research and development capabilities.
Suborbital rockets do not put any objects into Earth’s orbit or beyond and are used by universities and other organizations for testing, research, and development. Some argue they should be regulated by the Space Activities Act, while others fear this would make it more difficult to launch suborbital rockets, thus decreasing their effectiveness for research and development.
6. Re-entry
The Interim Report considers specific regulations for re-entry, including establishing systems and standards necessary to ensure public safety, like distinguishing re-entry from termination measures in the license related to the control of an artificial satellite.
The Earth’s orbit is a microgravity environment, enabling microgravity experiments related to drug discovery, semiconductors, and advanced materials manufacturing. When conducting microgravity experiments, equipment containing experimental samples is launched, intentionally re-entered into the atmosphere after the experiment is complete, and landed or splashed down on Earth with the equipment essentially undamaged. This activity is not currently covered by the Space Activities Act.
7. Manned Spaceflight and Transportation
The Interim Report considers implementing regulations for manned spaceflight and transportation, although Japan has not yet achieved this feat. The Interim Report states that regulations should take into account the current state of technological development; refer to legislative examples in other countries, in Japan’s Civil Aeronautics Act, and other manned flight/transportation legislation; and involve careful discussion with relevant parties and experts from the Japan Aerospace Exploration Agency (JAXA), private sectors, and others.
Some argue that rules should be established now and written into the Space Activities Act so Japan may remain competitive in the international competition for manned spaceflight and transportation. However, since Japan has no experience developing technology for manned spaceflight and transportation, there are concerns over the effectiveness and quality of such regulations.
B. Responding to Diversification of Artificial Satellites
1. Artificial Satellite That Goes Beyond Earth’s Orbit
The Interim Report considers whether, in the licensing system for managing artificial satellites, objects put beyond Earth’s orbit should be treated as “artificial satellites” and be subject to the same regulations as those put into Earth’s orbit.
The Space Activities Act defines an artificial satellite as “an artificial object that is used by putting it into the Earth’s orbit or beyond, or by placing it on a celestial body other than the Earth” (Article 2, Item 2). This means that (i) an artificial object that is put into Earth’s orbit, (ii) an artificial object that is put beyond Earth’s orbit, and (iii) an artificial object that is placed on a celestial body other than Earth are all treated as an “artificial satellite,” and the same regulations under the Space Activities Act apply to these three types of objects.
Some feel that separate regulations should apply to objects put in Earth’s orbit and beyond it according to each object’s characteristics and purpose.
2. Objects Outside the Definition of ‘Artificial Satellite’
The Interim Report suggests reviewing the definition of “artificial satellite” and determining if certain objects, like dummy payloads that do not separate from the orbital insertion stage of the rocket, monuments, and capsules for space burials, should be included in the definition.
[1] For example, the compensation measures amount is set at JPY 6 billion for the launch of the H-IIA (type 202), which has been Japan’s core launch vehicle for many years, from the Tanegashima Space Center, and JPY 9.9 billion for the launch of the H3 (type 22), which is Japan’s new core launch vehicle, from the Tanegashima Space Center (Public Notice of the Cabinet Office No. 138 of Dec. 2, 2024).
[2] Unlike launch vehicle fall damage, there is no system of channeling of liability for artificial satellite fall damage. Furthermore, those who control artificial satellites are not required to take measures to provide security for damages, and there is no system of government indemnification.