When was the case conducted against the Lunar Embassy, and in what country & at what level? Regardless, I agree with you that we need to clarify private property rights’ favorable status in space.
And for others, I reiterate how I previously mentioned that Article II of the 1967 Outer Space Treaty of the United Nations (ratified by around 100 member countries) states that:
Outer space, including the Moon and other celestial bodies, is not subject to national appropriation by claim of sovereignty, by means of use or occupation, or by any other means.
Where does it say that private appropriation is banned, though?
That is not explicit. However, any firm registered to do business in a signatory country would be bound by the Treaty.