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Policies and regulations governing electromagnetic spectrum prioritize reducing conflict among active users of spectrum (transmitters), thereby enabling these active users to capture the values associated with property rights to spectrum. Coexistence of heterogeneous technologies and their enforcement have been well studied, but much less has been done to consider the coexistence of heterogeneous uses and the institutions that are necessary to address conflict arising among different users of spectrum.We argue that prevailing property-rights institutions that focus on reducing conflict among active users of spectrum generate a property mismatch that contributes to conflict with passive users of spectrum. Passive users are interested primarily in receiving signals transmitted by nature. The property-mismatch approach offers insight into how to redesign spectrum governance to balance the demands of both active and passive users. Particularly we argue that virtual parceling of the electromagnetic spectrum along a broader range of dimensions can better facilitate efficient spectrum sharing between active and passive users.