Lunar Lessons from ispace: A View from Earth—and the Law

Disclaimer: This Dispatch contains a higher-than-usual dose of lawyering and geekery. Side effects may include spontaneous contract analysis, unexpected references to ITAR, and a compulsion to read SEC filings for fun. Proceed accordingly—especially if you're not yet on your second espresso.

Space exploration rewards the bold. That truth is likely top of mind for the team at ispace, the Japanese private company whose second attempt to land a spacecraft on the Moon appears to have failed. Despite my best efforts to shut off the legal side of my brain—yes, some of us can do that after years of Vulcan-like focus on analyzing problems without immediately invoking the law—I couldn’t help myself this time.

As I listened to ispace’s CEO speak and reviewed the available facts, the legal instincts were fully engaged. I found myself thinking not just about the technical and operational aspects of the mission, but also about the contracts, regulatory entanglements, risk allocation, and compliance puzzles that inevitably come with complex space endeavors. My sympathy extends to the legal teams now navigating these turbulent waters, primarily as they work with engineers and mission planners who, when topics like export controls or ITAR arise, often regard lawyers as more of a hindrance than a help.

When ispace eventually succeeds—and it likely will—it will become the first Japanese private enterprise to soft-land on the Moon. They made their first attempt in April 2023, and again this month. So far, only two private American companies have accomplished that feat and successfully conducted operations on the lunar surface: Intuitive Machines, which landed in February 2024, and Firefly Aerospace, which followed earlier this year. An Israeli effort, SpaceIL’s Beresheet mission, came close in 2019 before crash-landing during final descent.

During the press conference announcing the most recent failure, ispace’s CEO delivered a public apology—clear, direct, and heartfelt. To many Americans, seeing a business leader take responsibility so openly may seem unfamiliar. However, in Japan, this is expected; it reflects a culture where accountability, especially in public service and business, carries a more profound and collective significance. It’s a stark contrast to Western corporate culture—and a reminder that space, while vast, is still shaped by the people and values that send missions aloft.

From a space law standpoint, ispace’s trials offer a glimpse into the legal and regulatory maze companies must navigate when reaching for the Moon. There are a few essential technical and legal takeaways worth highlighting.

Just take a look at publicly available documents like SpaceX’s SEC filings, which include a Launch Services Agreement, or the SpaceX Rideshare Payload User Guide. There’s enough legal and regulatory content in there to make your head spin—checklists spanning everything from export controls and payload certifications to liability waivers and insurance thresholds. It’s a reminder that behind every successful launch is a legal team working in lockstep with engineers and operations.