1. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 1 © ESPI 2010 www.espi.or.at Policy Aspects of Third Party Liability in Satellite Navigation. Preparing a Roadmap for Europe UNIDROIT Informal Consultation Meeting “ Third party liability for GNSS” Rome, 22 October 2010 Matxalen Sánchez Aranzamendi, Resident Fellow ESPI

2. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 2 Mission Statement The mission of the European Space Policy Institute (ESPI) is to provide decision-makers with an independent view and analysis on mid- to long- term issues relevant to the use of space. Through its activities, ESPI contributes to facilitate the decision-making process, increases awareness of space technologies and applications with the user communities, opinion leaders and the public at large, and supports students and researchers in their space-related work. To fulfil these objectives, the Institute supports a network of experts and centres of excellence working with ESPI in-house analysts.

3. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 3 What ESPI provides for decision-makers and the whole space community Arguments for the “Case for Space” Policy concepts for international, regional and national activities Analyses for mid-term visions Platforms for exchange Sources of information

4. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 4 © ESPI 2010 www.espi.or.at ESPI members ESPI partners and the European Space Policy Research and Academic Network (ESPRAN) coordinated by ESPI

5. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 5 © ESPI 2010 www.espi.or.at Products and ServicesAssignments Yearbook on Space Policy Studies in Space Policy Specials Reports ESPI Perspectives Position papers and Memoranda Coordination of ESPRAN Support for EISC Ambassadorship for IAP Information resources Conferences

6. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 6 The setting ESPI workshop, 15 May 2009 ESPI Report 19: Policy Aspects of Third Party Liability in Satellite Navigation

7. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 7 The workshop Aim To contribute to the ongoing discussions on liability schemes for GNSS Structure 1 st part: presentations by Proff. Magnus, Carbone and Masutti on: Status and shortcommings of the current legal setting Rationale for an international convention on GNSS TPL Basic principles for an EU GNSS TPL 2 nd part: roundtable and open discussion Key elements for an international and an EU GNSS TPL framework

8. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 8 Status and shortcomings of the current legal setting Points of conflict:Shortcomings: State immunityCan be invoked, no protection International jurisdictionsMultiplicity, not suited to mass disasters Determination of the applicable lawDifficulty and unpredictability Diverse substantive laws Different treatment in alike cases Recognition of jurisdictionJudgements not always recognised “The present state of Third Party Liability in Satellite Navigation and its shortcomings,” Ulrich Magnus A common legal framework (fw) would alleviate the current complexity and adapt better to the specific risks of GNSS

9. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 9 Rationale for an international convention on GNSS TPL Three potential approaches for tackling the shortcomings: Strict approachleave it as it is Middle ground approachmodel law Wide approachinternational convention “The rationale for an international convention on Third Party Liability in Satellite Navigation,” Sergio M. Carbone Elements to be contained: Liability channelled towards one party Strict liability: fault Uniform regime of responsibility Direct claim from insurer

10. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 10 Basic principles for an EU GNSS TPL Main goals of a legal fw for Galileo TPL: Def. of reimbursable loss + Identification of compensation Characteristics: Strict liability: security exemption, liability caps Insurance: Direct claim + exoneration for insurer if recklessness Compensation: Fund Recourse + supplementary compensation “GNSS: The basic principles for a European Legal framework on Third Party Liability,” Anna Masutti Galileo Reg. 683/2008, does not foresee any contractual liability obligation

11. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 11 Open points for discussion Liability must not be passed entirely to private actors Liability must reflect the governance scheme of the GNSS Regard to dual nature New risks due to interoperability Expansion of GNSS liability to combined technologies Coordination with other liability regimes An international framework could tackle GNSS specificities Galileo is the only civilian GNSS though

12. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 12 In general GNSS presents very specific risks not completely tackled by existing legal frameworks International framework for GNSS TPL could tackle those specificities Galileo is the only civilian GNSS system + imminently operational Europe has no time for an international convention The relationship between Galileo TPL and the international convention could be later worked out through ICAO type of regional agreements

13. _____________________________________________________ TPL for GNSS, 22 October 2010 Matxalen Sánchez Aranzamendi page 13 © ESPI 2010 www.espi.or.at Policy Aspects of Third Party Liability in Satellite Navigation. Preparing a Roadmap for Europe UNIDROIT Informal Consultation Meeting “ Third party liability for GNSS” Rome, 22 October 2010 Matxalen Sánchez Aranzamendi, Resident Fellow ESPI