[arin-ppml] 2008-6: Emergency Transfer Policy for IPv4 Addresses

[michael.dillon at bt.com]

> This is nonsense. Literally. IP address transfer markets are 
> not derivative markets,

A derivative is essentially a contract. It is used to buy or
sell something, that normally cannot be bought or sold. Yes,
it is true that the most common types of derivative contracts
are options and futures, but there are many others.

> IP 
> address transfers as proposed by various RIR policy changes 
> directly transfer a valuable but intangible asset from one 
> party to another. There is no redistribution of risk. 

Given that the RIR policies and registration agreements(contracts)
all state clearly that IP addresses are not property, I don't
see how you can buy or sell the right to use them other than 
through a derivative contract. So far, I have seen no policy
proposals to change IP addresses into property, and if they
are not property, then they cannot be an asset and cannot be
bought or sold.

As for redistribution of risk, that is insurance (or reinsurance)
and is not an essential component of a derivative contract.

> Let's keep in mind that transfers of IP addresses already 
> happen. Are you suggesting that they all be stopped?

Yes, they should all be stopped. The only legitimate way to 
acquire the right to use an IP adress block is to show technical
justification to an RIR. The only legitimate transfer of right to
use an address is one that transfers network assets, or one that
has an RIR as one of the two parties.

--Michael Dillon