The error in what Fernando just said is: parent companies do not, in fact, 
transfer their possibly-valuable IP space to subsidiaries - they 
assign/allocate instead.  Until very recently, that wasn’t possible in many 
cases, so we wound up with yet another instance of ARIN policy that actively 
prevented the database from being as accurate as possible.  That’s fixed (more 
or less) as of this year – I admit I haven’t done all the SWIPs I should have 
by now, now that I can!

My primary concern with this policy is that it will do much the same – drive 
leasing underground, and the public registry will then fail to accurately 
reflect reality in yet another way.

I hold ARIN’s goal of maintaining an open, accurate database of IP address 
usage to be ultimately far more important than its explicit non-goal of 
regulating IP address usage.
I believe this proposal tries to put ARIN into the role of “Internet cop” again 
and is inappropriate.

Preventing legitimate users from using leased IP addresses does not help the 
internet.  Preventing illegitimate users from doing so might well help the 
internet, but leads straight into the classic “only criminals will have guns” 
argument – why would anyone with a shady use ever use truthful information in 
an application to ARIN in the first place?
-Adam

Adam Thompson
Consultant, Infrastructure Services
[MERLIN]
100 - 135 Innovation Drive
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(204) 977-6824 or 1-800-430-6404 (MB only)
https://www.merlin.mb.ca<https://www.merlin.mb.ca/>
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From: ARIN-PPML <arin-ppml-boun...@arin.net> On Behalf Of Fernando Frediani
Sent: September 11, 2022 10:30 PM
To: arin-ppml@arin.net
Subject: Re: [arin-ppml] Draft Policy ARIN-2022-9: Leasing Not Intended


Hello Bruce
Thanks for sharing these concerns. Seem reasonable ones.

Talking briefly it is hard to catch all possible details, but I see that in a 
network infrastructure transfer to a subsidiary there are different ways that 
can be done. In general these subsidiary may likely have direct connectivity 
from the parent company in a provider/customer relationship, but when it is not 
the case I think it is fair to think that the subsidiary or startup company may 
not need a large amount of addresses to start with, so the parent willing to 
support it can easily transfer a small amount of address via the normal 
transfer process and allow that company to start giving more flexibility so it 
to grow overtime and if necessary make subsequent transfers.

I understand the scenario you describe may look legitimate, but the issue is to 
have too generic and open way that end up allowing the usage of resources in a 
forbidden or unfair way that is damageable to the Internet community.
The most common to start with is, if the resource holder doesn't provide any 
type of connectivity to the receiving organization it may cause security issues 
because the resource holder does not have immediate physical control to manager 
or filter them.

Some of the drivers of the proposal is to make sure that resources are always 
used in the most fair way and that doesn't cause security issues to Internet 
ecosystem overtime. It doesn't sound fair, specially in times of IPv4 
exhaustion that a shared resources that nobody owns alone, to go to those who 
can pay more rather than to those who really need and justify for them 
according to the current rules that everyone is subjected to. There is no 
justification to have a prefix allocated from an organization to another if the 
second one is perfectly able to get them directly from a neutral and well 
established organization - ARIN.

I hope it helps to address some of your concerns, otherwise we carry on.

Best regards
Fernando
On 10/09/2022 16:25, Bruce Cornett wrote:
I still see a significant issue. Consider the transfer of network 
infrastructure to a subsidiary or possibly a startup.  And for the moment the 
parent corporation is not providing connectivity.  If the blocks are 
transferred to the subsidiary and something goes awry with that business 
segment, access to the blocks could be lost.  The end users with connectivity 
go belly up with essentially no recourse.

The reasonable solution is to simply allow the subsidiary or startup to use the 
blocks subject to an agreement between the two parties.

While I can't suggest I know the driver for the proposal, I would guess it's to 
reign in the month to month leasing of address blocks for dubious services.

It may make sense to make a policy that disallows leasing for network usage 
justification.
Bruce C


On Sep 10, 2022, at 10:13 AM, Fernando Frediani 
<fhfredi...@gmail.com><mailto:fhfredi...@gmail.com> wrote:


Hello Bruce

There is not problem at all in these scenarios as resources can be easily 
transferred and there are policies for that already, therefore the mechanism 
already exist.

Fernando
On 10/09/2022 13:31, Bruce Cornett via ARIN-PPML wrote:

Hello

I see a potential problem where changes in corporate structure occur when 
shifting day to day operations to subsidiaries or sister corporations, leaving 
the block assignment with the original holder.

Bruce C


On Sep 9, 2022, at 9:44 AM, Fernando Frediani 
<fhfredi...@gmail.com><mailto:fhfredi...@gmail.com> wrote:


Hello

There is no such error in the proposal.
This has been checked as being the interpretation staff gives to the current 
policy in most RIRs. APNIC is just an example that have confirmed it publicly a 
couples of days ago.
You may not find all the very specific words you may wish for in the text, but 
it is not much difficult for them to have such interpretation given the 
resources must follow a proper justification of what they will be used for and 
that can never be that you will use them for leasing (rent of lend). ARIN also 
already confirmed in this very same list they don't accept it as a 
justification.

There is no much around the term leasing. If an organization who don't provide 
any connectivity services to another simply rent or lend IP space, with or 
without a cost associated that is something that must not be since they no 
longer have a justification to keep that IP space and instead should either 
transfer it to those who really justify or return to ARIN.

Fernando
On 24/08/2022 11:04, Mike Burns wrote:
Opposed, I think the proposal contains errors that should be fixed before the 
discussion proceeds.

For example this statement :
“In other RIRs, the leasing of addresses is not authorized either and since it 
is not explicit in their policy manuals either, this proposal will be presented 
as well.”

If it is not in their policy manuals, how can the proposers state leasing is 
not authorized?
Where do the proposers think authority comes from, if not from policy and 
contract?
Are they just assuming that all things are prohibited unless they are 
explicitly allowed?
That would be an interesting way to read the policy manual, if that is the 
belief, we should discuss that.

Beyond that there is the very next sentence:
” Nothing is currently mentioned in RIPE about this and it is not acceptable as 
a justification of the need. “

Once again the bias is towards prohibition despite language about leasing being 
absent from RIPE policy. More to the point, and something that can’t be 
drummed-home clearly enough to this community, RIPE has no needs test at all 
for transfers and hasn’t for years.  And yet RIPE still exists and operates as 
an RIR.  Even further to the point, in the one occasion that RIPE performs a 
needs-test, which is on inter-regional transfers from ARIN, leased-out 
addresses are in fact acceptable as justification. That’s because of two 
logical things. First, RIPE understands that the inherent value of the 
addresses drives them towards efficient use. Second, RIPE understands that they 
are charged with getting addresses into use, not getting them into use on 
particular networks.

So the first two sentences in the “situation at other RIRs” are 
problematic/false.
Might I suggest fixing those before we move forward, and also can you please 
define the word leasing?

This seems poorly though-out to me, and I haven’t started on the meat of the 
proposal yet nor how it would be effectively policed and prohibited.

Regards,
Mike








From: ARIN-PPML <arin-ppml-boun...@arin.net><mailto:arin-ppml-boun...@arin.net> 
On Behalf Of ARIN
Sent: Tuesday, August 23, 2022 12:29 PM
To: PPML <arin-ppml@arin.net><mailto:arin-ppml@arin.net>
Subject: [arin-ppml] Draft Policy ARIN-2022-9: Leasing Not Intended

On 18 August 2022, the ARIN Advisory Council (AC) accepted "ARIN-prop-308: 
Leasing Not Intended" as a Draft Policy.

Draft Policy ARIN-2022-9 is below and can be found at:

https://www.arin.net/participate/policy/drafts/2022_9/

You are encouraged to discuss all Draft Policies on PPML. The AC will evaluate 
the discussion to assess the conformance of this draft policy with ARIN's 
Principles of Internet number resource policy as stated in the Policy 
Development Process (PDP). Specifically, these principles are:

* Enabling Fair and Impartial Number Resource Administration
* Technically Sound
* Supported by the Community

The PDP can be found at:

https://www.arin.net/participate/policy/pdp/

Draft Policies and Proposals under discussion can be found at: 
https://www.arin.net/participate/policy/drafts/

Regards,

Sean Hopkins
Senior Policy Analyst
American Registry for Internet Numbers (ARIN)


Draft Policy ARIN-2022-9: Leasing Not Intended

Problem Statement:

“IPv6 Policy (section 6.4.1.) explicitly mention that address space is not a 
property. This is also stated in the RSA (section 7.) for all the Internet 
Number Resources.

However, with the spirit of the IPv4 allocation policies being the same, there 
is not an equivalent text for IPv4, neither for ASNs.

Further to that, policies for IPv4 and IPv6 allocations, clearly state that 
allocations are based on justified need and not solely on a predicted customer 
base. Similar text can be found in the section related to Transfers (8.1).

Consequently, resources not only aren’t a property, but also, aren’t allocated 
for leasing purposes, only for justified need of the resource holder and its 
directly connected customers.

Therefore, and so that there are no doubts about it, it should be made explicit 
in the NRPM that the Internet Resources should not be leased “per se”, but only 
as part of a direct connectivity service. At the same time, section 6.4.1. 
should be moved to the top of the NRPM (possibly to section 1. “Principles and 
Goals of the American Registry for Internet Numbers (ARIN)”.”

Policy statement:

Actual Text (to be replaced by New Text):

6.4.1. Address Space Not to be Considered Property

It is contrary to the goals of this document and is not in the interests of the 
Internet community as a whole for address space to be considered freehold 
property.

The policies in this document are based upon the understanding that 
globally-unique IPv6 unicast address space is allocated/assigned for use rather 
than owned.

New Text

1.5. Internet Number Resources Not to be Considered Property

It is contrary to the goals of this document and is not in the interests of the 
Internet community as a whole for address space to be considered freehold 
property.

The policies in this document are based upon the understanding that Internet 
Number Resources are allocated/assigned for use rather than owned.

ARIN allocate and assign Internet resources in a delegation scheme, with an 
annual validity, renewable as long as the requirements specified by the 
policies in force at the time of renewal are met, and especially the 
justification of the need.

Therefore, the resources can’t be considered property.

The justification of the need, generically in the case of addresses, implies 
their need to directly connect customers. Therefore, the leasing of addresses 
is not considered acceptable, nor does it justify the need, if they are not 
part of a set of services based, at least, on direct connectivity.

Even in cases of networks not connected to the Internet, the leasing of 
addresses is not admissible, since said sites can request direct assignments 
from ARIN and even in the case of IPv4, use private addresses or arrange 
transfers.

Timetable for implementation: Immediate

Situation in other Regions:

In other RIRs, the leasing of addresses is not authorized either and since it 
is not explicit in their policy manuals either, this proposal will be presented 
as well.

Nothing is currently mentioned in RIPE about this and it is not acceptable as a 
justification of the need. In AFRINIC, APNIC and LACNIC, the staff has 
confirmed that address leasing is not considered as valid for the justification.




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