[ppml] Securities Act 15 U.S.C. 77b(a)(1)

[michael.dillon at bt.com]

The Securities Act defines some terms in order to state what is and is
not covered by the act. The definition of the term "security" is found
in the section referred to in the subject. I used Cornell's online copy
of the U.S. Code in order to read what I hope is the current definition.
You can check that out here:
<http://www.law.cornell.edu/uscode/15/usc_sec_15_00000077---b000-.html>
or if you want to knock yourself out, you can find all of Title 15 here:
<http://www.law.cornell.edu/uscode/15/usc_sup_01_15.html>

It seems to me that the definition does not clearly exclude the trading
of IP address contracts as some members of this list envision it. That
means, that ARIN policy in this area could potentially create a new type
of security or security derivative whose trading is regulated by the
SEC.

It would be interesting for ARIN to find a legal expert in the area of
Title 15, particularly Chapter 2, who could explain what the definition
means, and where there might be boundaries which ARIN policy must NOT
cross if ARIN wishes to avoid regulatory scrutiny by the SEC. In
addition, depending on how clear the case law is in this area, the legal
expert could explain whether or not ARIN should ask the SEC for a ruling
on the situation before proceeding with policies about IP address
trading.

The definition of "security" from Title 15 is as follows:

(1) The term "security" means any note, stock, treasury stock, security
future, bond, debenture, evidence of indebtedness, certificate of
interest or participation in any profit-sharing agreement,
collateral-trust certificate, preorganization certificate or
subscription, transferable share, investment contract, voting-trust
certificate, certificate of deposit for a security, fractional undivided
interest in oil, gas, or other mineral rights, any put, call, straddle,
option, or privilege on any security, certificate of deposit, or group
or index of securities (including any interest therein or based on the
value thereof), or any put, call, straddle, option, or privilege entered
into on a national securities exchange relating to foreign currency, or,
in general, any interest or instrument commonly known as a "security",
or any certificate of interest or participation in, temporary or interim
certificate for, receipt for, guarantee of, or warrant or right to
subscribe to or purchase, any of the foregoing. 

--Michael Dillon

P.S. In case you hadn't noticed, I am not a lawyer.