Protecting the final frontier: Patent strategy in the 2026 U.S. space race

Technology in the U.S. space sector is rapidly advancing, accelerating both commercial development and national-security-relevant innovation. As private and government actors expand activities in orbit, clear legal frameworks are increasingly necessary to promote commercialization while addressing national security concerns. One area where the need for clarity is especially pronounced is intellectual property (IP) strategy, particularly the development, protection and monetization of patent portfolios.

This article surveys selected regulatory updates, proposed patent reforms and executive-branch initiatives that affect space-sector IP strategy. Collectively, these developments suggest that U.S. policy is moving toward a more robust, innovation-focused approach to space-related IP, one that can support economic competitiveness, defense capability and scientific progress.

1. Regulatory developments to watch in 2026

The Patent Eligibility Restoration Act (PERA) / RESTORE Patent Rights Act

Several 2026 developments could materially affect innovation incentives and patent strategy in the space sector.

This proposal would revise the framework governing patent subject matter eligibility.

Instead of relying on judge-made exceptions (such as "abstract ideas"), PERA would define a narrower list of expressly ineligible subject matter. For space companies, this could reduce uncertainty around software-implemented and AI-enabled systems, including:

• Spacecraft control algorithms

• Autonomous navigation software

• Debris-mitigation platforms

• AI-driven satellite systems

• Sensor-processing tools

Greater predictability in eligibility standards can directly influence investment decisions in capital-intensive space ventures.

The PREVAIL Act

The PREVAIL Act proposes reforms to proceedings before the Patent Trial and Appeal Board (PTAB), particularly inter partes review (IPR).

Key themes include:

• Limiting repetitive challenges to the same patent

• Refining standing and real-party-in-interest requirements

• Strengthening estoppel principles

• Better aligning PTAB outcomes with district court litigation

For space innovators protecting mission-critical technologies, reduced exposure to serial challenges could strengthen portfolio stability.

USPTO focus on "applied technologies"

The United States Patent and Trademark Office has signaled a more application-oriented approach to examining complex commercial systems, including aerospace and space technologies.

Recent decisions emphasize that AI and software claims may be eligible when framed as concrete technical improvements. For space-sector applicants, this trend may improve predictability when patenting:

• Satellite architectures

• Orbital robotics

• Propulsion control systems

• Integrated hardware-software systems

Executive branch initiatives

Recent directives--including Ensuring American Space Superiority and Executive Order 14335--focus on regulatory streamlining and accelerating commercial launch activity.

These policies aim to:

• Reduce launch licensing delays

• Expedite environmental reviews

• Decrease regulatory friction for commercial space activities

If commercialization timelines compress, patent protection becomes more valuable--because exclusivity operates during a more commercially meaningful window.

Mission authorization framework

The United States Department of Commerce is developing a mission authorization regime for certain "novel" space activities.

A clearer framework could support investment in emerging sectors such as:

• In-orbit servicing

• Active debris removal

• In-orbit manufacturing

Where regulatory predictability increases, patent strategy often follows.

2. Growth in space-related patent activity

These policy developments coincide with significant growth in space-technology patent filings. Since 2003, U.S. space-tech patent applications reportedly have risen approximately 144%, spanning both hardware and software innovations, including:

• Rocket engines and propulsion systems

• Satellite communication arrays

• Navigation and autonomy software

• Robotics platforms

• Life-support systems

• Resource extraction technologies

Patents remain central--but they are not the only form of protection.

• Copyright may protect software code and technical documentation.

• Trademark plays an increasing role in space tourism, commercial launch branding and satellite-enabled services.

A layered IP approach is often necessary where disclosure requirements, enforcement realities or export controls complicate pure patent protection.

3. The jurisdictional gap

Despite domestic reform efforts, there is no comprehensive international treaty governing patent enforcement in outer space.

As a result, companies often "ground" their patent strategies in terrestrial legal hooks, tying inventive activity and potential infringement to identifiable jurisdictions, such as:

• Where components are designed or manufactured

• Where launch occurs

• Where mission control operates

• Where commercial sales or services are conducted

Enforcement in orbit presents practical challenges:

• Inaccessible hardware

• Export-controlled telemetry

• Multinational operations

In the near term, the most practical solution is contract-forward structuring. Cross-border collaborations should incorporate:

• Clear IP ownership and allocation provisions

• Forum-selection and choice-of-law clauses

• Audit and data-preservation obligations

• Operational protocols designed to preserve proof without compromising safety or national security

Conclusion

As 2026 unfolds, commercial growth, national security priorities and technological acceleration are converging to demand a more coherent approach to space-related IP.

Legislative proposals, executive initiatives and evolving USPTO practice point toward strengthening patent protection for emerging technologies. Yet the realities of space--jurisdictional ambiguity and enforcement constraints--require careful structuring and strategic foresight.

Durable, predictable patent frameworks will be essential to ensuring that U.S. space innovation remains competitive in the final frontier.