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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Policy Proposal Name</span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'> – Revisions to M&A Transfer Requirements<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Proposal Originator</span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'> – Marc Lindsey <o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Proposal Version</span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'> - 1<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Date</span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'> – June 14, 2012<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Policy type</span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'> – Modification to existing policy<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Policy term</span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'> - Permanent<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Policy Statement</span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p><h4><span style='font-family:"Arial","sans-serif";font-weight:normal'>Delete sections 8.1. and 8.2 in their entirety and replace them with the following:<o:p></o:p></span></h4><p><b><span style='font-family:"Arial","sans-serif"'>8.1 Principles <o:p></o:p></span></b></p><p><span style='font-family:"Arial","sans-serif"'>ARIN will not change its WHOIS database to record the transfer of number resources between organizations unless such transfer complies with this Section 8. ARIN is tasked with making prudent decisions when evaluating registration transfer requests.<o:p></o:p></span></p><h4><a name=eight2></a><span style='font-family:"Arial","sans-serif"'>8.2. Mergers and Acquisitions<o:p></o:p></span></h4><p><span style='font-family:"Arial","sans-serif"'>When the transfer of any number resource is requested by the current registrant or its successor or assign (the “new entity”), ARIN will transfer the registration of such number resources to the new entity upon receipt of evidence that the new entity has lawfully acquired the resources from the current registrant as the result of a merger, acquisition, reorganization or name change. ARIN will maintain an up-to-date list of acceptable types of documentation. Transfers under this Section 8.2 shall not be contingent upon the new entity’s justification of need for the transferred numbers. <o:p></o:p></span></p><p><span style='font-family:"Arial","sans-serif"'>If the transfer request pertains to non-legacy number resources, the new entity shall be required to execute, in its own name, an RSA covering the transferred numbers, and pay the applicable registration fees. <o:p></o:p></span></p><p><span style='font-family:"Arial","sans-serif"'>If the transfer request pertains to legacy numbers, the transfer shall not be contingent upon the new entity entering into an RSA, LRSA or any of form of written agreement with ARIN. For each transfer of legacy numbers under this Section 8.2, ARIN shall assess, and the new entity shall pay, a one-time “Legacy Record Change Fee” as set forth in the fee schedule <i>unless</i> the new entity elects, in its discretion, to enter into an LRSA covering the transferred legacy numbers and pays the applicable registration fees.<o:p></o:p></span></p><p><span style='font-family:"Arial","sans-serif"'>[Note: This proposal incorporates the definition of “legacy number” from proposal 172 as revised June 6, 2012. The amount of the Legacy Record Change fee is TBD] <o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Rationale </span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>– The current version of 8.2 actually discourages legacy holders from (a) updating the WHOIS database, and (b) paying fees to assist with records management associated with the WHOIS database. Some entities that currently control resources do not attempt to update the WHOIS records because the current transfer process puts at risk their ability to retain and use their numbers. Under the current process, legacy holders or their lawful successors must first prove that they are the lawful successor (which is necessary and appropriate). But they then must also justify their need to continue using numbers they obtained prior to ARIN’s existence. Once they pass the needs hurdle, they must then execute an RSA (not even an LRSA) that alters their rights and subjects their numbers to audit and possible revocation under then-current policy. <o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>For non-legacy registrants, the process should also be less burdensome and uncertain. Ensuring the continuity of a company’s IP addressing scheme as part of an M&A transactions should be within the control of the entities directly involved. ARIN’s discretionary approval of transfers in this context introduces an undesirable and unnecessary contingency. Entities concerned about whether their M&A related update request will be approved by ARIN simply do not attempt to fully update the records.<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Minimizing the barriers for both legacy and non-legacy holders to update the WHOIS database when changes are required to accurately reflect normal corporate reorganization activities will help increase the accuracy of the WHOIS database, which benefits the community as a whole. <o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Timetable for implementation</span></b><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'> - Immediate<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:12.0pt;color:#404040'>Marc Lindsey<o:p></o:p></span></b></p><p class=MsoNormal><span style='color:#686667'>Levine, Blaszak, Block & Boothby, LLP<o:p></o:p></span></p><p class=MsoNormal><span style='color:#686667'>2001 L Street, NW Suite 900<o:p></o:p></span></p><p class=MsoNormal><span style='color:#686667'>Washington, DC 20036<o:p></o:p></span></p><p class=MsoNormal><span style='color:#595959'>Phone:</span><span style='color:#007BAF'> (202) 857-2564<o:p></o:p></span></p><p class=MsoNormal><span style='color:#686667'>Email:</span><span style='color:blue'> </span><span style='color:#007BAF'><a href="mailto:adelgado@lb3law.com"><span style='color:#007BAF'>mlindsey@lb3law.com</span></a></span><span style='color:#003399'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#686667'>Website:</span><span style='color:#003399'> </span><span style='color:#007BAF'><a href="x-msg://295/www.lb3law.com"><span style='color:#007BAF'>www.lb3law.com</span></a></span><span style='color:blue'><o:p></o:p></span></p></div></body></html>