[arin-ppml] Recommended Draft Policy ARIN 2015-2 Modify 8.4 (Inter-RIR Transfers to Specified Recipients)

[ARIN]

Recommended Draft Policy ARIN-2015-2 Modify 8.4 (Inter-RIR Transfers to 
Specified Recipients)

On 19 May 2016 the ARIN Advisory Council (AC) advanced 2015-2 to 
Recommended Draft Policy status.

The text of the Recommended Draft Policy is below, and may also be found at:
https://www.arin.net/policy/proposals/2015_2.html

You are encouraged to discuss all Recommended Draft Policies on PPML 
prior to their presentation at the next ARIN Public Policy Consultation 
(PPC). PPML and PPC discussions are invaluable to the AC when 
determining community consensus.

The PDP can be found at:
https://www.arin.net/policy/pdp.html

Draft Policies and Proposals under discussion can be found at:
https://www.arin.net/policy/proposals/index.html

Regards,

Communications and Member Services
American Registry for Internet Numbers (ARIN)



Recommended Draft Policy ARIN 2015-2
Modify 8.4 (Inter-RIR Transfers to Specified Recipients)

Date: 24 May 2016

AC's assessment of conformance with the Principles of Internet Number 
Resource Policy:

Draft Policy ARIN 2015-2 contributes to fair and impartial number 
resources administration by removing an impediment to the transfer of 
IPv4 numbering resources to other RIRs when business needs change within 
the first 12 months of receipt of a 24 month supply of IP addresses by 
an entity via the transfer market. It is technically sound in that it 
balances removing limits on transfers of IPv4 numbering resources to 
other RIRs with safeguards related to ownership and control described in 
the draft policy to reduce the likelihood of fraudulent transactions. 
There was strong community support for this draft policy at the NANOG 66 
PPC and ARIN 37, subject only to some suggested editorial changes which 
have now been implemented in the latest version.

Problem Statement:

Organizations that obtain a 24 month supply of IP addresses via the 
transfer market and then have an unexpected change in business plan are 
unable to move IP addresses to the proper RIR within the first 12 months 
of receipt.

Policy statement:

Replace 8.4, bullet 4, to read:

"Source entities within the ARIN region must not have received a 
transfer, allocation, or assignment of IPv4 number resources from ARIN 
for the 12 months prior to the approval of a transfer request, unless 
either the source or recipient entity owns or controls the other, or 
both are under common ownership or control. This restriction does not 
include M&A transfers."

Comments: Organizations that obtain a 24 month supply of IP addresses 
via the transfer market and then have an unexpected change in business 
plan are unable to move IP addresses to the proper RIR within the first 
12 months of receipt. The need to move the resources does not flow from 
ARIN policy, but rather from the requirement of certain registries 
outside the ARIN region to have the resources moved in order to be used 
there.

The intention of this change is to allow organizations to perform 
inter-RIR transfers of space received via an 8.3 transfer regardless of 
the date transferred to ARIN. A common example is that an organization 
acquires a block located in the ARIN region, transfers it to ARIN, then 
3 months later, the organization announces that it wants to launch new 
services out of region. Under current policy, the organization is 
prohibited from moving some or all of those addresses to that region's 
Whois if there is a need to move them to satisfy the rules of the other 
region requiring the movement of the resources to that region in order 
for them to be used there. Instead, the numbers are locked in ARIN's 
Whois. It's important to note that 8.3 transfers are approved for a 24 
month supply, and it would not be unheard of for a business model to 
change within the first 12 months after approval. The proposal also 
introduces a requirement for an affiliation relationship between the 
source and recipient entity, based on established corporate law 
principles, so as to make it reasonably likely that eliminating the 12 
month anti-flip period in that situation will meet the needs of 
organizations that operate networks in more than one region without 
encouraging abuse.

a. Timetable for implementation: Immediate

b. Anything else: N/A

#####

ARIN STAFF & LEGAL ASSESSMENT
Draft Policy ARIN-2015-2
MODIFY 8.4 (INTER-RIR TRANSFERS TO SPECIFIED RECIPIENTS)
https://www.arin.net/policy/proposals/2015_2.html

Date of Assessment: 17 May 2016

___
1. Summary (Staff Understanding)

Currently, organizations are unable to act as a source on an 8.4 
transfer of IPv4 address space if they have received IPv4 address space 
in the past 12 months from ARIN's IPv4 free pool, the waiting list for 
unmet requests, or an 8.3 transfer. This draft policy lifts the 12-month 
restriction in cases when the source or recipient entity owns or 
controls the other, or both are under common ownership or control.

___
2. Comments

A. ARIN Staff Comments

* If this policy is implemented, ARIN staff would no longer apply a 
12-month time restriction to organizations who wish to 8.4 transfer IPv4 
addresses to themselves or in cases when the source or recipient entity 
owns or controls the other, or both are under common ownership or control.

* This policy could be implemented as written.

B. ARIN General Counsel – Legal Assessment

Concerns raised by the GC regarding previous versions of this policy 
have been satisfactorily addressed in the current draft. The current 
proposed draft does not create material legal issues for ARIN. In order 
to determine when entities are under common ownership or control, 
traditional legal standards will be applied by ARIN.

___
3. Resource Impact

Implementation of this policy would have minimal resource impact. It is 
estimated that implementation would occur within 3 months after 
ratification by the ARIN Board of Trustees. The following would be 
needed in order to implement:

* Updated guidelines and internal procedures

* Staff training

___
4. Proposal / Draft Policy Text Assessed

Draft Policy ARIN 2015-2
Modify 8.4 (Inter-RIR Transfers to Specified Recipients)

Date: 11 May 2016

Problem Statement:

Organizations that obtain a 24 month supply of IP addresses via the 
transfer market and then have an unexpected change in business plan are 
unable to move IP addresses to the proper RIR within the first 12 months 
of receipt.

Policy statement:

Replace 8.4, bullet 4, to read: "Source entities within the ARIN region 
must not have received a transfer, allocation, or assignment of IPv4 
number resources from ARIN for the 12 months prior to the approval of a 
transfer request, unless either the source or recipient entity owns or 
controls the other, or both are under common ownership or control. This 
restriction does not include M&A transfers."

Comments: Organizations that obtain a 24 month supply of IP addresses 
via the transfer market and then have an unexpected change in business 
plan are unable to move IP addresses to the proper RIR within the first 
12 months of receipt. The need to move the resources does not flow from 
ARIN policy, but rather from the requirement of certain registries 
outside the ARIN region to have the resources moved in order to be used 
there.

The intention of this change is to allow organizations to perform 
inter-RIR transfers of space received via an 8.3 transfer regardless of 
the date transferred to ARIN. A common example is that an organization 
acquires a block located in the ARIN region, transfers it to ARIN, then 
3 months later, the organization announces that it wants to launch new 
services out of region. Under current policy, the organization is 
prohibited from moving some or all of those addresses to that region's 
Whois if there is a need to move them to satisfy the rules of the other 
region requiring the movement of the resources to that region in order 
for them to be used there. Instead, the numbers are locked in ARIN's 
Whois. It's important to note that 8.3 transfers are approved for a 24 
month supply, and it would not be unheard of for a business model to 
change within the first 12 months after approval. The proposal also 
introduces a requirement for an affiliation relationship between the 
source and recipient entity, based on established corporate law 
principles, so as to make it reasonably likely that eliminating the 12 
month anti-flip period in that situation will meet the needs of 
organizations that operate networks in more than one region without 
encouraging abuse.

a. Timetable for implementation: Immediate
b. Anything else: N/A