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

Jo Rhett jrhett at svcolo.com
Tue Mar 11 12:01:07 EDT 2008

To argue that an IP address meets that definition requires a stretch of 
imagination that even lawyers can't handle. Only network engineers are 
capable of that stretch.

I forget the legal term offhand (and I'm not going to waste working day 
time looking it up) -- something like "intended use".  It's a legal idea 
widely used by judges to toss out complaints/motions which basically 
says that the law must have been intended to cover the issue.  That one 
cannot reread a law and try to make it cover something it clearly was 
never intended to cover.

To say that IP addresses (location identifiers at best) are monetary 
securities is a stretch only a network engineer could imagine.

michael.dillon at bt.com wrote:
> 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.
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