What happens when a satellite owned by a private company in one state crashes into another state's satellite? International space law has an answer. The solution, however, reflects a bygone, state-centric era created by the Peace of Westphalia in 1648. A better system must meet demands of the emerging commercial space sector. The treaty framework governing state activities in outer space reflects Cold War fears. Consequently, the space liability regime favors diplomatic, cooperative dispute resolution between states. States, therefore, must sponsor private entities' claims. If the treaty process is ineffective, state responsibility and international liability fill the gaps left by the space liability regime. Today, space is increasingly crowded as commercial ventures launch into space. For them, a state-centric liability regime is ineffective. I conclude by suggesting that states back commercial ventures by subsidizing liability insurance and encourage the private sector to circumvent the treaty framework through contractual allocation of risk. [ABSTRACT FROM AUTHOR]