Overview and Implications of Japan's Proposed Amendments to the Space Activities Act

In recent years, space development and utilization in Japan has rapidly diversified due to a surge in new market entrants and advances in technology. The environment surrounding rocket launches has also undergone significant changes; amid intensifying development competition, various forms of rocket launches are emerging. Against this backdrop, launch costs have been declining, and the objects being launched have become increasingly diverse — ranging from commemorative monuments launched by universities and private companies to artificial objects lacking position, attitude, and status control capabilities that are placed into Earth orbit or beyond.

The current “Act on Launching of Satellites, etc. and Control of Satellites” (Act No. 76 of 2016; hereinafter the “Space Activities Act”) is structured around the regulation of orbital insertion of satellites controlled in orbit, and its permitting system is premised on the loading and separation of satellites onto/from launch vehicles. As a result, certain emerging activities — such as test launches at the development stage carrying only dummy payloads,¹ launches of rockets without any payload, launches of uncontrollable objects, and new transportation concepts — fall outside the scope of existing regulations, giving rise to issues that the current law cannot adequately address.

In light of these recent developments in space development and utilization, and in order to address diverse demands relating to satellite launches while ensuring public safety, a bill entitled “Act for Partial Amendment of the Act on Launching of Satellites, etc. and Control of Satellites” (hereinafter the “Proposed Amendments”) was approved by Cabinet Decision on March 27, 2026, and submitted to the 221st Extraordinary Session of the Diet (parliament). The Proposed Amendments expand the permitting system for satellite launches to cover the launch of Space Rockets — including those not involving the loading or separation of satellites — and add operators launching Space Rockets (other than satellite launch vehicles) to the scope of the Rocket Fall Damages compensation system, among other measures.

The Proposed Amendments represent comprehensive legislative reform concerning launches, encompassing amendments not only to the Space Activities Act but also to the Basic Space Law (Act No. 43 of 2008), the Cabinet Office Establishment Act (Act No. 89 of 1999), and the Space Resources Act (“Act on the Promotion of Business Activities for the Exploration and Development of Space Resources” (Act No. 83 of 2021; hereinafter the “Space Resources Act”)). The reform marks a fundamental shift from a regulatory framework centered on the orbital insertion of satellites to one focused on the launch of rockets.²

This newsletter outlines the principal contents of the proposed amendments to the Space Activities Act (Section Ⅰ.), the implementation schedule (Section Ⅲ.), and provides an overview of the impact on stakeholders (Section Ⅳ.).

Table 1: Overview of the Proposed Amendments

The principal contents of the proposed amendments to the Space Activities Act within the Proposed Amendments are as follows. Unless otherwise indicated, article numbers cited below refer to those of the proposed amended Space Activities Act.

The name of the Space Activities Act will be changed from “Act on Launching of Satellites, etc. and Control of Satellites” to “Act on Launching of Space Rockets and Control of Specified Satellites.” This signals a transition from a regulatory system centered on satellite regulation to one that, as described below, encompasses the launch of objects not limited to satellites.

(1) Current law and the direction of the regulatory framework transition
The current Space Activities Act subjects the launch of Satellites, etc. from the territory of Japan (including separation of a satellite from a launch vehicle in orbit) to a permitting system (Chapter 2 of the current Act), and also subjects the management of satellites operated in Earth orbit or beyond using satellite management facilities located within Japan to a permitting system (Chapter 3 of the current Act), thereby regulating the launch and management of satellites as an integrated process. On the other hand, in recent years, during the development and demonstration phases of satellite launch vehicles, (a) rockets alone without any satellite or dummy payload, (b) rockets carrying only dummy payloads have been launched, and (c) artificial objects placed into Earth orbit or beyond that are not subject to “management” using satellite management facilities — such as small containers housing monuments or cremated remains, and artificial objects used to test reflective material characteristics — have also been inserted into orbit.

In response to these developments, (i) there has been a shift toward subjecting the launch of rockets itself to the permitting system regardless of the presence or type of payload, thereby transitioning from a satellite-focused regulatory framework to a rocket-focused one. In addition, (ii) since the launch of artificial objects not falling within the current definition of “satellite” — i.e., those not used in Earth orbit or beyond — is now expressly contemplated by law, these objects have also been brought within the scope of regulation.

(2) Reorganization of “Satellites, etc.” under the amended Act
The proposed amendments reorganize the definitions as follows: satellites already subject to management regulations are renamed “Specified Satellites” (see (a) below); and a new definition of “Satellites, etc.” is established to include artificial objects not “used” in orbit, bringing them within the scope of regulation (see (c) below). The definition of the regulated launch vehicle is also adjusted to “Space Rocket.”

(a) “Specified Satellite” (Article 2(vii)): A new definition referring to a satellite capable of having its position, attitude, and operational status controlled. This corresponds to what was simply called a “satellite” under the current Act and was subject to management permits; the management permitting system (Chapter 3) will apply only to “Specified Satellites.”

(b) “Satellite” (Article 2(iii)): Under the current Act, a “Satellite” is defined as an artificial object that is inserted into Earth orbit or beyond, or placed on celestial bodies other than Earth, for the purpose of “use”  (Article 2(ii) of the current Act). In the proposed amendments, the wording of the provision remains essentially unchanged.  However, with “satellite” that is already under the management regulations in the current Act defined as “Specified Satellite” under the proposed amendments, the definition of “Satellite” under the proposed amendments more explicitly includes artificial objects that are uncontrollable (i.e., “unmanaged” and not subject to management license) but “used” in orbit (e.g., research-purpose satellites without radio equipment for control).

(c) “Satellites, etc.” (Article 2(iv)): This means (i) satellites and (ii) artificial objects other than satellites that are loaded onto Space Rockets and inserted into Earth orbit or beyond, or placed on celestial bodies other than Earth. The definition encompasses satellites under the current Act (including “Specified Satellites” subject to management permits and satellites that are “used” but unmanaged), as well as dummy payloads, monuments, research objects, and other artificial objects not “used” in orbit. 

(d) “Space Rocket” (Article 2(ii)) and “Launch of a Space Rocket” (Article 2(vi)): A rocket launched from Earth that possesses sufficient thrust to reach Earth orbit or beyond, or a celestial body other than Earth, is newly defined as a “Space Rocket.” While the current Act’s “satellite launch vehicle” had no explicit definition (cf. Article 2(iii) of the current Act), the regulated launch was defined as “launch of Satellites, etc.” and referred only to acts up to and including separation of the satellite (Article 2(v) of the current Act), premised on the rocket’s purpose being limited to satellite launches. Under the new “Space Rocket” definition, the rocket and payload are decoupled, enabling regulation of the rocket launch itself regardless of the presence or type of payload.

Under the amended Act, where Satellites, etc. are loaded onto a Space Rocket and separated at a certain velocity and altitude, the act of separation is also included within the definition of “Launch of a Space Rocket,” and the endpoint of the launch (the demarcation point of the responsibility of the launch operator and the satellite operator) is the moment of separation of the Satellites, etc. — substantively maintaining the current Act’s framework.

Figure 1: Classification of “Space Rocket” and “Satellites, etc.” under the revised Act

(1) Regulation of launches not involving loading/separation of Satellites, etc.
As discussed above, any person intending to launch a Space Rocket from the territory of Japan (using a launch facility located within Japan or mounted on a vessel or aircraft of Japanese nationality) must obtain the permission of the Prime Minister for each launch (Article 4(1)). All Space Rocket launches, including those not involving the loading or separation of Satellites, etc., will now require permission.

(2) Amendment of application form requirements
With the expansion of the scope of launches subject to permission, the matters to be stated in launch permit application forms will be added or modified according to the applicable category (Article 4(2)). For example:

Since the purpose of Space Rocket launches may vary, “purpose of the Space Rocket launch” (Article 4(2)(ii)) has been added as a required item. Additionally, since Satellites, etc. other than (Specified) Satellites subject to management permits may be loaded onto Space Rockets, “whether Satellites, etc. will be loaded onto the Space Rocket” and, where applicable, certain matters (e.g., target orbit, intended use, method, and structure of the Satellites, etc.) are required items (Article 4(2)(v)).

(3) Amendment of permit criteria
The permit criteria for Space Rocket launches have been amended, and, for instance, the following criteria (including some that were previously substantively covered by guidelines) will be established at the statutory level:

Purpose of launch: The purpose of the Space Rocket launch must be consistent with the basic principles of the Basic Space Law and must not be likely to impede the proper and smooth implementation of the treaties relating to the development and use of outer space (Article 6(i)).

Satellite Contamination Prevention and Safety Standards: Where Satellites, etc. are to be loaded, their structure must comply with standards for the prevention of harmful contamination of outer space⁶ and ensuring public safety, according to the target orbit (Article 6(iv)(b)). Under the current Act, such compliance was required for the management permit for satellites (Article 22(ii) of the current Act) but was not required at the launch permit stage. Under the amended Act, compliance will be required at the launch permit stage, including for artificial objects that are not managed or used in orbit.

Rocket launch plan and execution capability: The rocket launch plan (a required application item; Article 4(2)(vi)) must be appropriate for ensuring public safety and preventing harmful contamination of outer space, and the applicant must have sufficient capability to implement the plan (Article 6(v)). As noted above, the current Act required prevention of harmful contamination of outer space for satellite management permits, but not for launch permits. For example, where a rocket is capable of reaching Mars orbit, compliance with the COSPAR Planetary Protection Policy — including assessment of Mars impact probability — is required as an effective requirement under the “prevention of harmful contamination of outer space including the Moon and other celestial bodies” prescribed in Article 9 of the Outer Space Treaty.⁷ The amendment can be seen as clarifying the nature of such requirements as ensuring compliance with the Outer Space Treaty.

(4) Prohibition on loading unpermitted Satellites, etc.
The loading of unpermitted Satellites, etc. onto launch rockets is expressly prohibited. Specifically, a launch operator may not load onto a Space Rocket any Satellites, etc. other than those for which permission has been obtained by stating certain matters in the launch permit application (Article 8(3)).

The current “Type Certification” system for rocket designs will be replaced by a “Design Confirmation” system (Article 13(1)).⁸ Under the current Act, Type Certification could be obtained for a rocket type and applied to multiple launches of the same type; under the amended Act, Design Confirmation will be conducted for each individual rocket.⁹

A Design Confirmation certificate bearing a Design Confirmation number will be issued to the person who has received confirmation (Article 13(4)). Where Design Confirmation has been obtained, the launch permit application may state the Design Confirmation number in lieu of the Space Rocket design details (Articles 4(2)(iii), 4(3)). In practice, it is expected that launch permit applications will typically be filed after obtaining Design Confirmation.

The current “Foreign Certification” system (which accepted foreign government certification of rocket designs as equivalent; Article 4(2)(ii) of the current Act) will be abolished.¹⁰

The Conformity Certification system for launch facilities will also be changed from one based on each rocket Type Certification to one based on each Space Rocket design (Article 16(1)).

The Proposed Amendments define Satellites, etc. (excluding Specified Satellites) prior to loading onto a Space Rocket as “Pre-Loading Satellites, etc.” (Article 2(viii)) and establish a system (Pre-Loading Conformity Certification) whereby the Prime Minister certifies, upon application by the person holding ownership or other management authority over the Pre-Loading Satellites, etc.,¹¹ that the structure of such Satellites, etc. conforms to the Satellite Contamination Prevention and Safety Standards (standards ensuring that the Satellites, etc. will not impede the prevention of harmful contamination of outer space or the securing of public safety) prior to launch (Article 18-2(1)). This system has been established to prevent harmful contamination of outer space and ensure public safety even for objects other than Specified Satellites subject to management permits.

Where an application is filed, the Prime Minister must grant Conformity Certification if the structure of the Pre-Loading Satellites, etc. is found to conform to the Satellite Contamination Prevention and Safety Standards (Article 18-2(3)).

A Pre-Loading Satellites, etc. Certification certificate bearing a Conformity Certification number will be issued to the certified person (Article 18-2(4)).

Where Conformity Certification has been obtained and the Conformity Certification number is stated in the Space Rocket launch permit application for all or part of the Satellites, etc. to be loaded,¹² it will no longer be necessary to describe the structure of such Satellites, etc. in the application (Articles 4(5), 4(2)(v)(f)). In practice, it is expected that launch permit applications will typically be filed after obtaining Pre-Loading Conformity Certification.

Where the target orbit or structure of the Satellites, etc. is changed after certification but before launch, an amended certification must be obtained (Article 18-3(1)). The Prime Minister may revoke the Conformity Certification if it was obtained by fraud or other improper means, if the Satellites, etc. subsequently cease to conform to the Satellite Contamination Prevention and Safety Standards, if changes are made without certification, or if a corrective order is violated (Article 18-4).

As discussed above, the Proposed Amendments expand the scope of regulation to encompass Space Rockets not involving loading or separation of Satellites, etc., as well as artificial objects that do not qualify as (Specified) Satellites, as targets of launch-related regulation. Correspondingly, the existing system for compensation of damages caused by the fall of rockets or satellites has been expanded with respect to both (1) Rocket Fall Damages and (2) Satellite Fall Damages. The purpose is to continue ensuring Japan’s responsible space activities by adding strict liability as a counterpart to the permitting system and by thoroughly protecting victims.

(1) Rocket Fall Damages (Chapter 5)
Acts such as launching an orbital-insertion rocket alone or launching an orbital-insertion rocket without separating Satellites, etc. — i.e., launching a Space Rocket with orbital-insertion objects other than Satellites, etc. — are considered to present dangers equivalent to the launch of Satellites, etc. Accordingly, from the perspective of victim protection, regardless of whether a Specified Satellite is loaded, the launch operator of a Space Rocket is required, like the current satellite launch operator, to take damage compensation measures (Article 9), is subject to strict liability for Rocket Fall Damages arising from the Space Rocket launch (Article 35), and benefits from channeling of liability for Rocket Fall Damages (Article 36) while being eligible for government compensation (Article 40). This is intended to protect victims while promoting rocket development and supporting the realization of new private-sector space transportation.

(2) Satellite Fall Damages (Chapter 6)
Strict liability of Specified Satellite managers (Article 53(1)): A person managing a Specified Satellite using domestic Specified Satellite management facilities bears strict liability for Satellite Fall Damages. That is, strict liability continues to be imposed, as under the current Act, with respect to fall damages related to satellites capable of having their position, attitude, and operational status controlled (Specified Satellites).

New strict liability for Satellites, etc. other than Specified Satellites (Article 53(2)): Where a Space Rocket loaded with Satellites, etc. other than Specified Satellites is launched using a domestic launch facility,¹³ and such Satellites, etc. cause Satellite Fall Damages, (i) if the Satellites, etc. were loaded without entrustment, the person who launched the Space Rocket bears strict liability, and (ii) if the Satellites, etc. were loaded by entrustment, the person who made the entrustment bears strict liability. Under the current Act, objects other than “satellites” that can be controlled in orbit were outside the scope of the satellite management permitting system and lacked clear liability provisions; strict liability is therefore being added as a counterpart to bringing these objects within the scope of the launch permitting system.

Under the current Act, unlike Rocket Fall Damages, there is no obligation to take damage compensation measures for Satellite Fall Damages, and no channeling of liability or government compensation is provided. This structure remains unchanged after the amendments. Accordingly, people who launch or entrust the launch of Satellites, etc. other than Specified Satellites will bear strict liability and should consider measures to secure damage compensation, such as obtaining liability insurance, according to the nature of the Satellites, etc.

The amendments to the Space Activities Act and the Cabinet Office Establishment Act will come into effect on a date to be specified by Cabinet Order, within one year from the date of promulgation. However, the amendments to the Basic Space Law will take effect on the date of promulgation (Supplementary Provision, Article 1 of the amending Act).

As a transitional measure, the management of satellites that were inserted into Earth orbit or beyond, or placed on celestial bodies other than Earth, under permits granted before the effective date will continue to be governed by the prior provisions (Supplementary Provision, Article 2 of the amending Act).¹⁴

The Space Activities Act is to be reviewed approximately three years after the effective date of the amending Act, taking into account the status of implementation and other factors, with necessary measures to be taken as appropriate (Supplementary Provision, Article 5 of the amending Act). This review provision will enable improvements to the system based on post-amendment operational experience.

The Proposed Amendments may have wide-ranging implications for stakeholders both domestically and internationally.
 

• Launch service providers and rocket developers: Permission will be required for all Space Rocket launches, including test launches, and an obligation to submit a rocket launch plan will be imposed. The transition from Type Certification to Design Confirmation for individual rockets will require operators that previously relied on a single Type Certification for multiple launches of the same type to review their operational workflows.
• Satellite operators, manufacturers, research institutes, and other businesses utilizing artificial objects in orbit: Under the Pre-Loading Conformity Certification system, it is expected that in practice, Satellites, etc. (other than Specified Satellites subject to management regulations) will typically obtain certification of compliance with the Satellite Contamination Prevention and Safety Standards prior to launch. For non-standard payloads such as nanosatellites and uncontrollable research objects, it will be necessary to consider timelines and costs through to launch.
• Payload entrustment clients (rideshare customers, etc.): Persons who entrust the loading of Satellites, etc. other than Specified Satellites will bear new strict liability for fall damages caused by such Satellites, etc. after separation. A review of contractual arrangements, insurance coverage, and indemnification provisions will be important.
• Insurance companies and financial institutions: The expansion of the obligation to take damage compensation measures to cover Space Rocket launch operators, together with the expansion of strict liability for Satellite Fall Damages relating to Satellites, etc. other than Specified Satellites, may prompt new risk assessments and product design considerations.
• International stakeholders: Foreign satellite operators and payload providers using Japanese launch services may be subject to the Pre-Loading Conformity Certification requirements. The strict liability provisions applicable to entrustment clients are also expected to apply where foreign operators make such entrustments. Attention should also be given to the fact that, with the abolition of the Foreign Certification system, Design Confirmation under Japanese law will be individually required even where a rocket designed abroad is launched from within Japan.

In the next issue, we will identify and examine matters that were discussed by the Working Group on the Amendment of the Space Activities Act last year but were ultimately not reflected in the Amendment Bill.