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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">I am writing to advise of changes made today to the text of Draft Policy ARIN-2015-2.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">On February 9, 2016 I presented ARIN-2015-2 and the additional new proposed language that I had circulated on PPML on January 31, 2016 at the NANOG PPC. (The additional
proposed language had received no comments on PPML between January 31 and the date of the NANONG PPC.)
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">It seems like the additional text has struck the right balance between enabling multi-region network operators to use their resources in the regions in which they need them
via inter-RIR transfers to affiliates and ensuring that the anti-flip provisions are not too readily circumvented by entities that could use the those transfer provisions in a fraudulent manner instead. I say this because there were no comments received on
PPML at the PPC about how that balance was being struck after the proposed language change was presented, whereas in the past, that had been the most significant aspect of the discussion.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">At the PPC, one person said he was in favour of the Draft Policy. There was only one other comment, and it focused on the fact that the text was still rather cumbersome
and difficult to parse. In order to alleviate this concern, in the course of modifying the Draft Policy today, I have made one further modification that would simplify the text, by creating a definition of “affiliated” and using that definition in the fourth
bullet of section 8.4. Based on all of this, the text and related information for the Draft Policy now read as follows:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Draft Policy ARIN 2015-2: Modify 8.4 (Inter-RIR Transfers to Specified Recipients)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Date: 15 April 2015
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Problem Statement:
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Organizations that obtain a 24 month supply of IP addresses via the transfer market and then have an unexpected change in business plan are unable to move IP addresses to
the proper RIR within the first 12 months of receipt. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Policy statement:
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Replace 8.4, bullet 4, to read:
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">"Source entities within the ARIN region must not have received a transfer, allocation, or assignment of IPv4 number resources from ARIN for the 12 months prior to the approval
of a transfer request, </span><span style="font-size:12.0pt;font-family:"Times New Roman",serif">unless the source entities are affiliated with the recipient entities outside the ARIN region</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif">.
This restriction does not include M&A transfers." <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Add new section 2.17 that reads:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">The term “affiliated” means that an entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with another
entity.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Add new section 2.18 that reads:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">The term “control” means the possession, directly or indirectly, through the ownership of voting securities, by contract, arrangement, understanding, relationship or otherwise,
of the power to direct or cause the direction of the management and policies of a person. The beneficial ownership of more than 50 percent of a corporation's voting shares shall be deemed to constitute control.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Comments: The intention of this change is to allow organizations to perform inter-RIR transfers of space received via an 8.3 transfer regardless of the date transferred
to ARIN. A common example is that an organization acquires a block located in the ARIN region, transfers it to ARIN, then 3 months later, the organization announces that it wants to launch new services out of region. Under current policy, the organization
is prohibited from moving some or all of those addresses to that region's Whois; the numbers are locked in ARIN's Whois. It's important to note that 8.3 transfers are approved for a 24 month supply, and it would not be unheard of for a business model to change
within the first 12 months after approval. The proposal also introduces a requirement for an affiliation relationship between the source and recipient entity, based on established corporate law principles, so as to make it reasonably likely that eliminating
the 12 month anti-flip period in that situation will meet the needs of organizations that operate networks in more than one region without encouraging abuse.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">a. Timetable for implementation: Immediate
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">b. Anything else</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;mso-fareast-language:EN-CA">: N/A<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;mso-fareast-language:EN-CA"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;mso-fareast-language:EN-CA">Chris Tacit</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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