Dear Community Members: The purpose of this email is to provide notice of the current status of Recommended Draft Proposal ARIN-2015-2.
On 19 May 2016 the ARIN Advisory Council (AC) advanced 2015-2 to Recommended Draft Policy status. Comprehensive information regarding the proposal is set out below. There was some further discussion of the policy on PPML in Early June. If you have any further comments regarding this proposal, you are encouraged to post them on PPML. Recommended Draft Policy ARIN 2015-2 Modify 8.4 (Inter-RIR Transfers to Specified Recipients) Date: 24 May 2016 AC's assessment of conformance with the Principles of Internet Number Resource Policy: Recommended Draft Policy ARIN 2015-2 contributes to fair and impartial number resources administration by removing an impediment to the transfer of IPv4 numbering resources to other RIRs when business needs change within the first 12 months of receipt of a 24 month supply of IP addresses by an entity via the transfer market. It is technically sound in that it balances removing limits on transfers of IPv4 numbering resources to other RIRs with safeguards related to ownership and control described in the draft policy to reduce the likelihood of fraudulent transactions. There was strong community support for this draft policy at the NANOG 66 PPC and ARIN 37, subject only to some suggested editorial changes which have now been implemented in the latest version. Problem Statement: 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. Policy statement: Replace 8.4, bullet 4, to read: "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, unless either the source or recipient entity owns or controls the other, or both are under common ownership or control. This restriction does not include M&A transfers." Comments: 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. The need to move the resources does not flow from ARIN policy, but rather from the requirement of certain registries outside the ARIN region to have the resources moved in order to be used there. 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 if there is a need to move them to satisfy the rules of the other region requiring the movement of the resources to that region in order for them to be used there. Instead, 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. a. Timetable for implementation: Immediate b. Anything else: N/A ##### ARIN STAFF & LEGAL ASSESSMENT Draft Policy ARIN-2015-2 MODIFY 8.4 (INTER-RIR TRANSFERS TO SPECIFIED RECIPIENTS) https://www.arin.net/policy/proposals/2015_2.html Date of Assessment: 17 May 2016 ___ 1. Summary (Staff Understanding) Currently, organizations are unable to act as a source on an 8.4 transfer of IPv4 address space if they have received IPv4 address space in the past 12 months from ARIN's IPv4 free pool, the waiting list for unmet requests, or an 8.3 transfer. This draft policy lifts the 12-month restriction in cases when the source or recipient entity owns or controls the other, or both are under common ownership or control. ___ 2. Comments A. ARIN Staff Comments * If this policy is implemented, ARIN staff would no longer apply a 12-month time restriction to organizations who wish to 8.4 transfer IPv4 addresses to themselves or in cases when the source or recipient entity owns or controls the other, or both are under common ownership or control. * This policy could be implemented as written. B. ARIN General Counsel - Legal Assessment Concerns raised by the GC regarding previous versions of this policy have been satisfactorily addressed in the current draft. The current proposed draft does not create material legal issues for ARIN. In order to determine when entities are under common ownership or control, traditional legal standards will be applied by ARIN. ___ 3. Resource Impact Implementation of this policy would have minimal resource impact. It is estimated that implementation would occur within 3 months after ratification by the ARIN Board of Trustees. The following would be needed in order to implement: * Updated guidelines and internal procedures * Staff training Chris Tacit
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