New
Regulations On Satellite Imaging Published By U.S.
The U.S. Federal
Register, July 31, published new regulations on satellite imagery,
to take effect on August 30. Among the changes is the lifting of a
cap on foreign investment in U.S. commercial satellite imaging
ventures (which had previously been capped at 25%). However, the
regulations establish a clear distinction between foreign investment
in a U.S. licensed system and operational control of that system.
The new regulations
require U.S. companies licensed to operate imaging satellites to
retain absolute control over their satellites, from U.S. territory.
Specifically, a U.S. licensee must be able, from U.S. territory, to
override imaging commands sent to the satellite by operators of
foreign ground stations.  The
published regulation states that these rules are applicable to any
commercial remote sensing system operator having “substantial
connections with the United States or deriving substantial benefits
from the United States.” These connections may include using a
U.S. launch vehicle or satellite bus, operating a command or data
acquisition station in the United States, or processing or marketing
data using U.S. facilities. The U.S. National Oceanic and
Atmospheric Administration (NOAA) regulates U.S. satellite imaging
businesses.
In
the past, the U.S. has exerted extraterritorial jurisdiction over
offshore companies. Two systems which may fall under U.S.
jurisdiction based on the language in the regulations are ImageSat
and  RadarSat.
Images from ImageSat International, Netherlands Antilles, will be
available in the United States through a distribution system owned
by Core Software Technologies, Pasadena, one of the owners of
ImageSat. Karen Dacres, an attorney in the General Counsel’s
office at NOAA, told Space News, “In the case of [ImageSat],
arguably they are operating through an affiliate. One could argue
that Core Software is the U.S. contact. There are lots of cases
supporting those types of findings.” ImageSat’s CEO, Jacob
Weiss, disputes that interpretation saying his company is not
subject to U.S. regulations. Dacres also told Space News that
Canada’s RadarSat radar imaging satellite could fall under U.S.
jurisdiction because the satellite is being built by McDonald
Dettwiler and Associates, a Canadian subsidiary of the U.S. company,
Orbital Science Corp. (Also, RadarSat 1 was launched on a Boeing
Delta 2, and RadarSat 2 is planned for launch on a Boeing Delta 2).
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