SPACE: One Small Step for Man, One Giant Leap for Law: The U.S. extends property rights to the cosmos—and mankind is off to mine platinum from an asteroid.

This might sound like science fiction, but it isn’t: Just before Thanksgiving the U.S. government made it legal for Americans to mine an asteroid—provided they can catch one. Several companies, believe it or not, are preparing to give this a go, pursuing already-identified asteroids that contain precious metals, such as platinum, worth trillions of dollars.

Although the prospects for commercial spaceflight have been skyrocketing, the law governing it had not been updated in more than a decade. That is what makes the bipartisan U.S. Commercial Space Launch Competitiveness Act, which President Obama signed Nov. 25, so important. The act is a full-scale overhaul that streamlines regulatory processes, promotes safety, and will allow commercial spaceflight companies to reach new milestones.

One provision of the law, however, has gotten most of the headlines. It says, quite simply, that if an American company retrieves minerals, metals or resources from an asteroid or other location in space, it owns them as far as the U.S. is concerned. That single sentence, which applies to all nonliving matter in the cosmos, appears to be the most sweeping legislative recognition of property rights in human history.

With this new law Congress has taken a Lockean approach. In his “Second Treatise of Government,” John Locke argued that God gave the world to humanity in common, but that each person owns himself and his labor. Therefore, when he puts labor into an object through work, he can develop a property right in the object. Similarly, the U.S. recognizes that the cosmos belongs to everyone. But under the new law resources can be retrieved from their location in space and subsequently developed. It is the work of doing this that creates the property right. . . .

With a strong, clear statement that the U.S. will recognize property rights in space, Congress has given a boost to a growing industry. Planetary Resources, a company that I advise, has already launched the first in a series of technology demonstration satellites and plans to send its first prospecting probe to an asteroid by the end of the decade. Private investors can now back it and other ventures, secure that they will own whatever metals and minerals they can extract and bring home.

Property rights spur hard work and innovation—in Locke’s day, in ours and in the age of commercial spaceflight to come.

Yes.