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[ppml] Policy Proposal 2007-8 - Staff Assessment

Policy Proposal 2007-8
Transfer Policy Clarifications

ARIN Staff Assessment

The assessment of this proposal includes comments from ARIN staff and
the ARIN General Counsel. It contains analysis of procedural, legal, and
resource concerns regarding the implementation of this policy proposal
as it is currently stated. Any changes to the language of the proposal
may necessitate further analysis by staff and Counsel.

I.	Proposal

   Policy Proposal 2007-8 is available as Annex A below and at:
   http://www.arin.net/policy/proposals/2007_8.html

II.	Understanding of the proposal

   ARIN staff understands that this proposal would standardize the use
of the term "number resources" throughout the transfer section of the NRPM.

III.	Issues and concerns

   A.	ARIN Staff

     No comments at this time.

   B.	ARIN General Counsel

     The ARIN General Counsel stated, "We are reviewing this policy. In
the past, we have advised that transfer issues create the risk of
litigation when ARIN refuses to transfer resources. In view of the
non-uniform RSAs, including some that have different dispute mechanisms,
ARIN should handle any changes regarding transfer as a policy, rather
than amending the RSA. ARIN should consider amending the proposed policy
so as to provide, in sum or substance, that if a party does not obtain
the transferred resources within a certain period of time, e.g., 30 days
or 45 days, then it would have the right to initiate a dispute in the
forum specified under the current RSA or the RSA that governs the party."

IV.	Resource Impact - Minimum

The resource impact of implementing this policy is viewed as minimum.
Barring any unforeseen resource requirements, this policy could be
implemented within 90 days from the date of the ratification of the
policy by the ARIN Board of Trustees. Implementation would not require
the acquisition of staff personnel or equipment. It will require the
following:

- Revisions to registration guidelines
- Staff Training

Respectfully submitted,

Member Services
American Registry for Internet Numbers (ARIN)


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Annex A

Policy Proposal 2007-8
Transfer Policy Clarifications

Proposal type: Modify

Policy term: Permanent

Policy statement:

That Section 8 of the NRPM is replaced as follows:

8. Transfers

     8.1. Transfers

     Number resources are non-transferable and are not assignable to any
other organization unless ARIN has expressly and in writing approved a
request for transfer. ARIN is tasked with making prudent decisions on
whether to approve the transfer of number resources.

     It should be understood that number resources are not "sold" under
ARIN administration. Rather, number resources are assigned to an
organization for its exclusive use for the purpose stated in the
request, provided the terms of the Registration Services Agreement
continue to be met and the stated purpose for the number resources
remains the same. Number resources are administered and assigned
according to ARIN's published policies.

     Number resources are issued, based on justified need, to
organizations, not to individuals representing those organizations.
Thus, if a company goes out of business, regardless of the reason, the
point of contact (POC) listed for the number resource does not have the
authority to sell, transfer, assign, or give the number resource to any
other person or organization. The POC must notify ARIN if a business
fails so the assigned number resources can be returned to the available
pool of number resources if a transfer is not requested and justified.
     8.2. Transfer Requirements

     ARIN will consider requests for the transfer of number resources
only upon receipt of evidence that the new entity has acquired the
assets which had, as of the date of the acquisition or proposed
reorganization, justified the current entity's use of the number
resource. Examples of assets that justify use of the number resource
include, but are not limited to:

         * Existing customer base
         * Qualified hardware inventory
         * Specific software requirements.

     8.3. Documentation Requirements

     In evaluating a request for transfer, ARIN may require the
requesting organization to provide any of the following documents, as
applicable, plus any other documents deemed appropriate:

         * An authenticated copy of the instrument(s) effecting the
transfer of assets, e.g., bill of sale, certificate of merger, contract,
deed, or court decree
         * A detailed inventory of all assets utilized by the requesting
party in maintaining and using the number resource
         * A list of the requesting party's customers using the number
resources

     If further justification is required, the requesting party may be
asked to provide any of the following, or other supporting
documentation, as applicable:

         * A general listing of the assets or components acquired
         * A specific description of acquisitions, including:
               o Type and quantity of equipment
               o Customer base
         * A description of how address space is being utilized
         * Network engineering plans, including:
               o Host counts
               o Subnet masking
               o Network diagrams
               o Reassignments to customers

Policy Rationale

Staff analysis and community comments have a problem with the
inconsistent use of the terms "ASN" and "IP Address" in this section
which leads to confusion on which resources can be transferred. The
entire section now utilizes the term "number resources" to clarify what
would appear to be the original intent.

A section regarding the handling of customer networks outside ARIN's
geographic region has been removed to reflect the actual current
procedure utilized that was developed in conjunction with the ERX
transfer project.

The last section of old text has been removed as it does not appear to
be so much policy as guidance.

Timetable for implementation: Immediate