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SpaceX’s Starlink satellite lawyers refute latest “flawed” OneWeb critique

Dozens of OneWeb satellites visualized during a future Ariane 6 constellation launch. (Arianespace)

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After years of relentless legal badgering from internet satellite constellation competitor OneWeb, SpaceX’s regulatory and legal affairs team appears to have begun to (in a professional manner) lose patience with the constant barrage.

On February 21st, SpaceX published a withering refutation of OneWeb’s latest criticism that offered a range of no-holds-barred counterarguments, painting the competitor – or at least its legal affairs department – as an entity keen on trying to undermine Starlink with FCC-directed critiques based on flawed reasoning, false assumptions, misinterpretations, and more. Alongside a number of memorable one-liners and retorts, legal counselors William Wiltshire and Paul Caritj and SpaceX executives Patricia Cooper and David Goldman openly “wonder whether OneWeb would be satisfied with SpaceX operating at any altitude whatsoever.”

One of the first two prototype Starlink satellites separates from Falcon 9’s upper stage in February 2018. (SpaceX)

SpaceX’s Starlink modification request

In late 2018, SpaceX filed a request with the FCC (Federal Communications Commission) that would allow the company to significantly modify parts of its Starlink satellite constellation license, cutting 16 spacecraft from the original total of 4425 and moving Phase 1’s now-1584 satellites from an operating altitude of ~1100-1300 km (680-810 mi) to just 550 km (340 mi). Aside from further reducing the latency of communications, SpaceX also argues that “the principal reason” behind lowering the operational altitude of the first ~37% of Starlink satellites was “to [further] enhance the already considerable space safety attributes of [the] constellation.”

SpaceX’s first two Starlink prototype satellites are pictured here before their inaugural launch, showing off a thoroughly utilitarian bus and several advanced components. (SpaceX)

The safety benefits of a significantly lower orbit come into play when the potential dangers of space debris come into play. Put simply, satellites in lower orbits – particularly orbits below ~1000 km – end up experiencing far more drag from the upper vestiges of the Earth’s atmosphere, drag that acts like an automatic switch in the event that a given LEO satellite loses control. At 500 km and below, even small spacecraft with enough surface area will automatically reenter Earth’s atmosphere within just a few years (~5), while orbits around 1000-1500 km can stretch the time to reentry by a factor of 5-10, often taking decades. In other words, SpaceX’s desire to lower the initial operating orbit of ~1600 Starlink satellites would end up dramatically reducing the consequences the failure of one or several satellites would have on other spacecraft operating in the same orbital regions

“Rather than base its critiques on facts in SpaceX’s application or evidence in the record, OneWeb relies entirely on a collection of flawed assumptions cobbled together into an equally-flawed fictional scenario.

Overall, OneWeb rested its interference analysis entirely on incorrect assumptions and overlooked basic operational distinctions in the actual effect of the proposed SpaceX modification.”

SpaceX, FCC SAT-MOD-20181108-00083, 02/21/2019 [PDF]

A step further, there is a great deal more irony to be found in OneWeb’s attempt to block SpaceX from lowering the orbit of its first ~1600 satellites. In 2017 and 2018, the company repeatedly complained to the FCC about the fact that SpaceX’s Starlink constellation was to nominally be placed in orbits from ~1100-1300 km, effectively sandwiching OneWeb’s own ~1200 km constellation. OneWeb continues to demand an unreasonable level of special treatment from the FCC, hoping that the commission will allow it to establish a sort of buffer zone extending 125 km above and below its own constellation, basically demanding that a huge swath of low Earth orbit be OneWeb’s and OneWeb’s alone. In reality, this is likely nothing more than a thinly veiled anti-competitive tactic, in which success would almost entirely bar other prospective space-based internet providers from even considering the same orbit.

SpaceX never explicitly says as much but it becomes eminently clear that the authors behind this latest response are rapidly losing patience with OneWeb’s years of shoddy attempts at legally suppressing competition. Given that lowering the orbits of almost 40% of SpaceX’s first round of Starlink satellites would end up working in OneWeb’s claimed favor, moving them out of what OneWeb views as its orbital territory, arguing against such a change would explicitly contradict arguments the company has made in prior SpaceX-focused complaints to the FCC.

“OneWeb is now challenging SpaceX’s plan to reduce altitude to further enhance the space safety attributes of its system. Considering OneWeb’s frequent request that SpaceX take this exact step of moving farther away from OneWeb’s proposed constellation, one is left to wonder whether OneWeb would be satisfied with SpaceX operating at any altitude whatsoever.

SpaceX, 02/21/2019

SpaceX’s Starlink internet satellite constellation visualized with just 1600 satellites. (Mark Handley)

SpaceX takes a different approach

Aside from seemingly hollow concerns about the “safety” of SpaceX’s request to lower Starlink satellite orbits, OneWeb further criticized SpaceX for what it perceived to be “operational setbacks” after launching a duo of prototype Starlink spacecraft, known as Tintin A and B. In essence, it appears that OneWeb made the bizarre decision to cite officially-unconfirmed and often-disputed reports that SpaceX’s prototypes were unable to reach their originally planned operational orbits of ~1125 km, effectively trapped at the ~515 km orbit they were dropped off in as a result of their shared launch.

“SpaceX originally expected to operate these satellites at approximately 515 km and then raise them to an altitude of 1,125 km for further testing, but chose not to do so. From this, OneWeb leaps to an unsupported conclusion that SpaceX’s experimental satellites faced “operational setbacks.” To the contrary, SpaceX made a conscious decision to remain at this optimal altitude for further experimentation.

Far from facing setbacks, the experimental program has validated SpaceX technology – including the Hall-effect thruster propulsion system and the capabilities of the communications payload. Thus, unlike OneWeb, SpaceX has successfully tested its spacecraft design in advance of initiating deployment of its commercial constellation.

SpaceX, 02/21/2019

While there was, in fact, some plausible evidence in mid-2018 that at least tentatively suggested that the spacecraft may have had issues with their first-generation ion thruster prototypes, it soon became clear that SpaceX and several major investors were sticking to the narrative that the Tintin twins were operating in fine health in orbit. It’s possible that SpaceX’s legal team and government relations executives are trying to aggressively spin on-orbit difficulties with the prototypes into good news, and the fact that SpaceX is requesting a modification to 550 km instead of Tintin A and B’s ~520 km orbits remains more than a little odd. However, including such brazen and open-faced lies in official legal/regulatory documents would be a deathwish SpaceX’s Starlink license in its entirety, while also begging for major SpaceX-aimed lawsuits and a general black cloud forming over the company.

If the FCC ultimately chooses to permit SpaceX’s Starlink license modification, the company’s first more or less operational Starlink launch – likely carrying anywhere from 10 to 30 satellites – could occur as early as late April or early May.

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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NASA taps SpaceX for more astronaut missions as Boeing Starliner remains grounded

NASA just gave SpaceX a $946 million contract for three more astronaut missions through 2030.

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NASA has awarded SpaceX a $946 million contract modification covering three more astronaut missions to the International Space Station, according to an announcement the agency published Friday. The award adds Crew-15, Crew-16, and Crew-17 to SpaceX’s existing Commercial Crew Transportation Capability contract, bringing the agreement’s total value to $5.92 billion across 17 flights.

SpaceX confirmed the award on X, writing that it was excited for Falcon 9 and Dragon to launch NASA’s Crew-15, 16, and 17 missions to the Space Station from Florida. The new missions cover ground, launch, in orbit, and return operations, along with cargo transport and a lifeboat capability while docked at the station, and the period of performance runs through 2030.

The award follows a notice of intent NASA issued in May, when the agency first signaled it would purchase up to six additional post certification missions from SpaceX. Teslarati covered that filing at the time, noting NASA cited technical issues and schedule delays encountered by Boeing as a driving factor. Friday’s contract modification locks in three of those six missions, with the remaining three left open for NASA to award later, potentially to Boeing if Starliner clears certification.

Boeing’s CST-100 Starliner has still not flown an operational crew rotation mission for NASA. The spacecraft’s most recent crewed test flight in 2024 ended without the astronauts returning aboard Starliner, and the company has spent the time since working through thruster problems. SpaceX President Gwynne Shotwell said this week that SpaceX is not retiring Crew Dragon today, for sure, while stopping short of committing to fly it past 2030.

Crew-12 is currently docked at the space station, and NASA has said Crew-13 is targeting a launch in the coming weeks. The newly awarded Crew-15 through Crew-17 missions extend SpaceX’s role as NASA’s primary way of getting astronauts to and from orbit well into the back half of the decade, regardless of what happens with Starliner or Starship in the meantime.

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Investor's Corner

New drone video shows Tesla’s Optimus Factory reaching a turning point

New drone footage shows Tesla’s dedicated Optimus factory steel frame nearing completion at Giga Texas.

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Tesla’s dedicated Optimus factory at Gigafactory Texas is closing in on a finished steel frame, according to drone footage posted Thursday afternoon by longtime site observer Joe Tegtmeyer. In the video, Tegtmeyer said structural steel assembly is now about five column grids away from reaching the building’s north perimeter beam, putting the primary skeleton in its final stretch roughly six months after Tesla broke ground on the North Campus site in late March.

Tegtmeyer’s footage shows concrete already going in on three upper floors while crews continue laying rebar and pouring grade beam footings at ground level. That kind of parallel work, steel rising at one end of the site while concrete sets at the other, is a scheduling approach Tesla used at the original Giga Texas building and appears to be repeating here to save time before the plant’s targeted 2027 production start.

Teslarati has tracked the building’s progress since Tesla confirmed construction was officially underway in May, when the first steel structure went up on what was then bare, reclaimed land. The facility is part of a more than 5.2 million square foot expansion of Giga Texas’s North Campus that Tesla has said will eventually run nearly the length of the existing vehicle factory, over 4,000 feet, while sitting somewhat narrower. Musk has pegged the long term output target at 10 million Optimus units a year once the line is running at full capacity, a volume that would dwarf the one million unit pilot line Tesla is standing up separately at its Fremont, California factory.

Tesla Giga Texas to feature massive Optimus V4 production line

The Texas facility sits alongside another major buildout on the same campus. Terafab, the joint Tesla and SpaceX chip fabrication plant that will eventually supply the silicon running Optimus units in the field. Housing robot assembly and chip production on the same grounds is a deliberate supply chain decision, cutting down on the shipping and lead time that would otherwise sit between the two.

Tesla has not given an updated timeline beyond its previously stated goal of bringing high volume Optimus production online at the site in the summer of 2027. Fremont’s smaller pilot line began mass producing the current Gen 3 robot in January, with that plant expected to build tens of thousands of units this year primarily to generate the real world data Tesla needs to refine the robot’s software before Giga Texas ramps up. Six months of visible construction progress, tracked almost entirely through Tegtmeyer’s recurring drone flights, gives the clearest outside look yet at how seriously Tesla is treating that 2027 deadline.

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Investor's Corner

Tesla and SpaceX take “Terafab” Trademark fight to Federal Court

Tesla and SpaceX sue a small Illinois firm after cease and desist letters over Terafab.

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SpaceX Terafab rendering

Tesla and SpaceX are asking a federal judge to rule that their planned Terafab chip factory does not infringe a small Illinois company’s trademark, a request that arrives only after months of quiet negotiation broke down this summer.

The dispute traces to May 18, when Tesla filed three U.S. trademark applications for “Terafab” and “Tesla Terafab,” covering semiconductor chips and related chip making services. TERA-print LLC, a nanotechnology company that has held a federal trademark for “Tera-Fab” since 2021, responded five days later with a cease and desist letter. According to the lawsuit, first reported by Reuters, TERA-print argued that Tesla and SpaceX’s use of “Terafab” would confuse consumers familiar with its own trademark, which covers a desktop photolithography printer sold to researchers for sensor and bioengineering work.

What stands out in the filing is the timing of TERA-print’s own paperwork. One day before sending that cease and desist letter, on May 22, TERA-print applied to expand its existing registration to cover semiconductor materials, silicon chips, nanoelectronic devices and AI design services, categories it had not previously claimed. Tesla and SpaceX call that filing opportunistic in their complaint, noting it arrived two months after Tesla’s public Terafab announcement and just days after Tesla’s own trademark applications went in.

Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry

By June 10, TERA-print was threatening to sue for federal trademark infringement, false designation of origin and unfair competition, the complaint states. Rather than wait to be sued, Tesla, SpaceX and SpaceXAI met with TERA-print six separate times between June and August trying to resolve the dispute directly. Those talks collapsed, and the companies filed for declaratory judgment this week in the U.S. District Court for the Western District of Texas, asking a judge to find that “Terafab” does not infringe TERA-print’s mark before TERA-print can file a claim of its own.

TERA-print isn’t backing down. The company told PCMag it discussed a settlement with Tesla as recently as September 2 and feels misled by what it called Tesla’s professed interest in settling. Its CTO, Andrey Ivankin, said TERA-print holds a Defense Department contract to fabricate semiconductors and partially owns Mattiq Inc., an AI company built on TERA-print’s products, and that the company will vigorously defend its rights.

Tesla and SpaceX argue the overlap is superficial. Terafab is planned as a $16.8 billion complex spanning roughly 100 million square feet at the Grimes County site SpaceX confirmed last month, built to produce chips for Optimus robots, Tesla’s AI computing needs and SpaceX’s orbital data center ambitions, a scale and purpose the companies say no reasonable consumer would confuse with a tabletop lab printer. TERA-print’s product line has stayed focused on lithography tools for biological and sensor research since it registered its mark in 2021.

The trademark fight is the second legal dispute tied to the Terafab project in the past week, following a separate SpaceX suit aimed at keeping company records about the facility out of public view, as KBTX reported. Whether construction proceeds under the Terafab name now depends on a federal judge in Austin.

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