Space Imaging may be facing a significant battle as the company fuels the possible loss of its European distributor.

According to industry sources, the Colorado-based satellite imagery company is in arbitration talks with Space Imaging Europe, located in Athens, Greece, over some contractual glitches. Neither party would comment on the contract dispute, but John Copple, president of Space Imaging said, “Space Imaging Europe is fully functioning and fulfilling orders. We, however, do not discuss the status of or any details of our contracts with our regional affiliates. Space Imaging Europe has been collecting Ikonos imagery since February.”

Likewise, Nick Klavias of Space Imaging Europe added that business deals continue to be formed, clients continue to be served and markets segments continue to grow.

Even though Space Imaging Europe is a franchised European-governed and run company, some U.S. business philosophies may have trickled down that could be challenging business development.

“It is my belief that some possible problems that Space Imaging Europe faces lie in their weak distribution network and in their business philosophy of providing a total product from start to finish,” Evangelos Vozikis, president and CEO of InfoTop A.E., told SPACE BUSINESS NEWS. “It is difficult to gain trust here if you are the only player and do not give access to or work with others. For example, a Minister of Defense within the European Community would find it difficult to completely trust one person or organization when now you are no longer dealing with just one country but a group of nations,” he added.

“I have no comment [on either the strength or weakness of our European distribution network],” said Mark Brender, director of Space Imaging’s Washington operations.

Likewise, each international affiliate sets its own distribution, pricing structure and market focus for each region. For international sales, an image runs from $18 a square kilometer to $400 a square kilometer with a minimum order according to Conrad Mueller, vice president of international sales and marketing for Space Imaging.