International liability is one of the most difficult legal issues related to satellite navigation applications. The 1972 Liability Convention provides that a launching State shall be absolutely liable to pay compensation for damage caused by its space objects on the surface of the Earth or to aircraft flight, and liable for damage due to its fault in space. The legal situation of artificial satellites, including navigation satellites, is determined by their assignment to space objects. Unfortunately, the term “space object” is also not specifically defined in international space law. The main purpose of this article is to determine whether damage caused by satellite navigation systems can be covered by the Liability Convention, whether the Convention refers only to direct physical damage resulting from the fall or collision of space objects or whether it also encompasses damage resulting from the malfunctioning of a navigation space object and intangible electromagnetic waves. It seems that the present regulations of the Outer Space Treaty and the Liability Convention do not apply to satellite navigation and do not cover the damage caused by navigation’s intangible signals. Unfortunately, it is rather clear that the international community is unlikely to adopt uniform rules on liability for satellite navigation signals in the near future. However, the United Nations and its Committee on the Peaceful Uses of Outer Space remain to be the best platform to work on establishing the principles governing the issue of liability for damage caused by malfunctioning of satellite navigation systems and their signals.
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