I advise several large legacy block holders.  Some of them signed the LRSA, but 
many have not.  For them, the burdens imposed by the LRSA outweigh the 
benefits.   Some on the PPML have suggested that off-contract legacy holders 
don't sign up with ARIN because they want to be free-riders.  But the fees (and 
the avoidance of the fees) are not a factor in their LRSA decision.

Based on my experience working with legacy block holders, I believe adopting a 
policy substantially similar to RIPE 605 (ARIN prop 203) would go a long way in 
harmonizing the interests of the ARIN community with the community of legacy 
holders that do not have formal relationships with ARIN.

ARIN's absolute control over additional allocations of "free" IPv4 numbers in 
its region has served as the primary policy enforcement mechanism.  This carrot 
really only works on recipients that need more IPv4 numbers, and then only as 
long as ARIN has free numbers to give out.  It doesn't directly influence the 
behavior of many legacy block holders when they convey their spare numbers.   
Legacy holders are a major source of future IPv4 number distributions, and 
their relevance to the broader ARIN community will become more prominent as 
ARIN's IPv4 free pool reaches depletion.

In the secondary market context, ARIN now relies on its ability to withhold 
registry database updates as the primary means to extend enforcement of its 
current policies into private transactions between parties conveying beneficial 
use of IPv4 numbers.  This, however, is a weak enforcement tool. Two parties 
can convey beneficial use of IPv4 numbers in lawful commercial transactions 
without updating ARIN's registry database.  But IPv4 number conveyances not 
recorded in the registry system produces very undesirable results - the 
"reality" in the registry database will not reflect operational reality, as 
David Conrad and others have pointed out in several posts.

Buyers and sellers would prefer to document their conveyances in a reliable and 
accurate public registry, but not if the contingencies and conditions 
materially and adversely affect their commercial arrangement.  RIPE 605/ ARIN 
prop 203 recognizes this reality.  With a little tweaking, adopting it would go 
a long way in minimizing the disincentives now facing legacy holders (and 
entities that want to acquire their numbers) when contemplating whether 
updating the registry database is worth the risk of subjecting their 
transactions to ARIN's approval process.

Marc Lindsey
Levine, Blaszak, Block & Boothby, LLP
2001 L Street, NW Suite 900
Washington, DC 20036
Office: (202) 857-2564
Mobile: (202) 491-3230
Email: [email protected]<mailto:[email protected]>
Website: www.lb3law.com<http://www.lb3law.com>

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