[arin-ppml] ARIN-prop-173 Revisions to M&A Transfer Requirements

Owen DeLong owen at delong.com
Fri Jul 6 02:54:42 EDT 2012


On Jul 5, 2012, at 10:58 PM, Lindsey, Marc wrote:

> Owen,
>  
> Thanks for your (as always) prompt, and less critical-than-expected response.  It almost sounds like you could be in favor of the proposal with some further revision.  See some additional comments below.
>  

Perhaps...

> . . . .
> Owen wrote:
> FIrst, ARIN has no authority or ability to compel exclusivity. All ARIN can provide is a guarantee that the numbers assigned/allocated are unique among cooperating parties. That is, no other RIR nor the IANA nor ARIN will assign/allocate conflicting numbers to another party.
>  
> <<< Marc Lindsey Reply >>> I think I agree with you, but I’m not sure.  Is there something in my proposal that suggests that I believe ARIN has the power to compel non-members to do or not do something?
>  

From the proposal text...

8.1 second paragraph:
... Rather, such number resources are assigned by ARIN to an organization for its exclusive use, ...




> . . . .
>  
> Owen wrote:
> Creating a policy which is punitive to LRSA signatories is, IMHO, counterproductive. We want to create reasons for legacy registrants to sign LRSAs, not provide additional hurdles to that process.
>  
> <<< Marc Lindsey Reply >>>
> I very much appreciate the implications of the LRSA. But I don’t see how my proposal punishes organizations that have signed an LRSA – the LRSA’s terms and conditions would be no more burdensome than they are today.  My proposal does acknowledge that legacy numbers under LRSA are essentially the same as regular numbers; and legacy numbers not under contract are different than regular numbers.
>  

Your proposal 8.2.2 gives an advantage to legacy holders that have not previously signed an LRSA vs. those that have which get treated under 8.2.1.

IMHO, all transfer recordings should require the recipient to sign at least an LRSA, but ideally an RSA.

> As I read your statement, I was struck by your premise that getting holders of legacy numbers to sign the LRSA and, as result, strip legacy numbers of their legacy status is an important policy goal. I don’t think it should be.  And even if you or others think (as a matter of principle) eliminating the two classes of numbers is desirable, continuing to push, as an organization, for this ideal shouldn’t be more important than the accuracy of the registration databases. 

We can agree to disagree on this. The existence of a group of resource holders who believe that they have an ownership interest in the resources and/or that they are not subject to the policies set forth by the community for which the resources are managed in trust is, IMHO, one of the most problematic areas of number registration. Inaccuracies in the database will eventually get resolved by RPKI and the desire of ISPs not to route resources which are not properly registered.

>  
> Owen wrote: Removal of needs basis from section 8.2 is also not desirable, IMHO.
>  
> <<< Marc Lindsey Reply >>> Why? Companies that merge, divest, acquire assets are making business decisions on how to respond to market factors in their industries.  Inserting ARIN’s needs justification-based approval into these transactions is unnecessary.  But more pragmatically, applying needs justification to 8.2 transfers really only punishes those with regular numbers or numbers under LRSA.  My proposal attempts to provide holders of regular numbers with certain enhanced flexibility enjoyed by holders of legacy numbers not under LRSA.

That argument flies about as well as eliminating needs basis from address acquisition from the free pool IMHO.

You assume and assert that legacy holders not under RSA enjoy that privilege, but it isn't necessarily true in fact. Nothing prevents ARIN from removing the registration from the database upon discovery that the original legacy organization is no longer using the resources and/or no longer exists. At that point, ARIN is free to register the resources to another deserving party with need.

>  
> Owen wrote: Proposed 8.2.2 should allow the fee to be removed by signing an RSA and not only the LRSA.
>  
> <<< Marc Lindsey Reply >>> Why?  To the extent there is a difference between the LRSA and RSA, why should a successor of a company with legacy resources be asked or even contemplate the RSA instead of the LRSA?

First, ideally, they would not be offered the LRSA. Those differences (which are fewer than ever before, admittedly) are intended as an enticement to bring legacy registrants into the community. Upon transfer, resources should lose their legacy status IMHO.

> Owen wrote: Defining legacy numbers is in error. There are no such things as legacy numbers. There are legacy registrations, numbers which are subject to a legacy registration, and holders of legacy registrations (aka legacy registrants).
>  
>  
> <<< Marc Lindsey Reply >>> The definition acknowledges the practical reality of the two classes of numbers.  Believing that legacy numbers don’t exist is obviously your prerogative. But making policy decisions based on their non-existence (which is contrary to long-standing course of dealing) would be, in my opinion, a mistake.

Try to read what I wrote more carefully.

I am not saying there are not two classes of registrations. I am saying that it is the registration status which is legacy and not the numbers themselves. Numbers that are legacy absolutely stop being legacy when transferred under 8.3. They should stop being legacy when transferred under 8.2.

>  
> Owen wrote: Registrations for which ARIN provides services without a contract are the legacy registrations of concern in the current policy debates and we should, IMHO, seek to minimize the extent to which such registrations are treated differently, not create additional policy to create additional differences in their treatment.
>  
> <<< Marc Lindsey Reply >>> I think you have just made my point.   By eliminating the needs justification when regular numbers are transferred under 8.2, the proposed policy would bring greater parity between the way legacy numbers and regular numbers are passed on from current listed registrants to their lawful successors and assigns.   The only distinction is the LRSA/RSA requirement.  And this distinction merely preserves the status quo, and eliminates a key barrier preventing many legacy holders from seeking to update the registry databases.

Your statement assumes facts not in evidence... Namely that 8.2 transfers sourced from legacy registrants are not subject to needs basis. I do not believe that is the case.

Owen

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