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

Cliff Bedore cliffb at cjbsys.bdb.com
Mon Sep 29 15:51:51 EDT 2008

> > 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.

The idea of this is that it is a new transfer method to complement those that
exist.  It is not the buying and selling of anything.  All financial 
transactions (if any) are between the transferer and transferee.  ARIN simply
registers the transfer when it meets the conditions ARIN set.

I went through this example a while ago but I guess it's worth repeating.  In
Maryland, when you as a private owner sell a car to another private owner, the
state has some control over the transfer but has nothing to do with the price.
It has to pass an inspection (think prequalification) and you have to pay
sales tax (think ARIN fees)  The state requires and controls the transfer but
has nothing to do with the price.  The state issues the title but has no real
control or say in ownership.


> 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
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Cliff Bedore
7403 Radcliffe Dr. College Park MD 20740
cliffb at cjbsys.bdb.com http://www.bdb.com
Amateur Radio Call Sign W3CB For info on ham radio, http://www.arrl.org/

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