[arin-ppml] LAST CALL - Recommended Draft Policy ARIN-2019-12: M&A Legal Jurisdiction Exclusion

Owen DeLong owen at delong.com
Tue Jun 23 13:46:56 EDT 2020


No objection, support as written.

Owen


> On Jun 23, 2020, at 10:39 AM, ARIN <info at arin.net> wrote:
> 
> The ARIN Advisory Council (AC) met on 18 June 2020 and decided to send the following Recommended Draft Policy to Last Call:
> 
> ARIN-2019-12: M&A Legal Jurisdiction Exclusion
> 
> Feedback is encouraged during the Last Call period. All comments should be provided to the Public Policy Mailing List. Last Call will expire on 8 July 2020 (accounting for one United States federal holiday).
> 
> The Recommended Draft Policy text is below and available at:
> https://www.arin.net/participate/policy/drafts/
> 
> The ARIN Policy Development Process is available at:
> https://www.arin.net/participate/policy/pdp/
> 
> Regards,
> 
> Sean Hopkins
> Policy Analyst
> American Registry for Internet Numbers (ARIN)
> 
> 
> 
> Recommended ARIN-2019-12: M&A Legal Jurisdiction Exclusion
> 
> AC Assessment of Conformance with the Principles of Internet Number Resource Policy:
> 
> This policy enables fair and impartial number administration as it provides clear guidance regarding the impact of merger, acquisition or reorganization activity to the community. It is technically sound and has community support.
> 
> Problem Statement:
> 
> Merger and acquisition activity sometimes results in a surviving legal entity that is not in ARIN service region, but may prefer to continue the pre-existing relationship with ARIN.
> 
> Example: Imagine a case where a global company has decided to discontinue service in the ARIN service region (shuttering ARIN region offices laying off ARIN region employees, and canceling ARIN region customers) and repurpose the network resources and number resources in the rest of its global footprint. During restructuring the company concentrates its holdings in its European subsidiary, and then dissolved its US legal entity.
> 
> Imagine a case where a global company has decided to divest its service in the ARIN region (selling all ARIN region offices, all ARIN region network assets, all ARIN service region customers, all number resources used in the ARIN (associated with previous noted sale of network and customers), but retaining ARIN issued resources in use outside of the ARIN service region. During restructuring the company concentrates its holdings which are not in us in the ARIN service region in its European subsidiary, and then sells off its US legal entity (including the network, customers, addresses in use, etc) dissolved its US legal entity.
> 
> Policy Statement:
> 
> Add the following to section 8.2
> 
> Mergers, acquisitions, and reorganization activity resulting in the surviving entity ceasing to have a real and substantial connection with the ARIN region shall be permitted to continue holding any numbering resources issued (directly or indirectly) by ARIN prior to the merger, acquisition or reorganization activity, but shall not qualify for any additional numbering resources (directly or indirectly) from ARIN, unless and until it once again has a real and substantial connection with the ARIN region as required by the Numbering Resource Policy Manual.
> 
> Timetable for Implementation: Immediate
> 
> Anything Else:
> 
> This proposal may be overtaken by a more general approach to ARIN membership legal jurisdiction exclusion
> 
> To clarify scope, a legal entity present within the ARIN service region, and a current ARIN RSA executed with that entity, is necessary to receive allocations or assignments from ARIN. Therefore in the scenario postulated in the problem statement, the organization would have to re-establish itself within the ARIN service region to receive additional resources from ARIN, while it can continue to hold the allocations or assignments made prior to any merger, acquisition, or reorganization activity.
> 
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