This is an example of how policies penalize legitimate organizations needing to 
do legitimate transfers.  In my opinion the Polices have swung so far towards 
preventing abuse they impact legitimate transfers.  In the publicly traded 
company world, each quarter is like a year and a year is like 4 years to them 
since they have to publish their quarterly results 4 times a year.  For them a 
year is an eternity.  Also, the Internet itself has allowed business functions 
that once took months or years to take days or weeks which is todays reality.  
Some of y’all think 12 months or even 18 months is a short time but that 
doesn’t align with the reality of today’s business world that the Internet has 
helped foster.

Although I don’t like abuse either, I am definitely AGAINST raising the hold 
period to be longer than a year.  If it has to be a year then at minimum, there 
should be a procedure defined in the policy that an organization can appeal to 
the ARIN CFO (or whoever) to get an exception for a shorter timeframe – even as 
short as 30 days.  If what the organization is doing is legitimate and the ARIN 
CFO will approve it, then the 12 month hold rule should be waived.  My 2 cents.

Steven Ryerse
President
100 Ashford Center North, Suite 110, Atlanta, GA  30338
770.656.1460 - Cell
770.399.9099- Office

[Description: Description: Eclipse Networks Logo_small.png]℠ Eclipse Networks, 
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        Conquering Complex Networks℠

From: [email protected] [mailto:[email protected]] On Behalf 
Of Owen DeLong
Sent: Saturday, February 22, 2014 11:43 PM
To: Scott Leibrand
Cc: ARIN-PPML List
Subject: Re: [arin-ppml] 2014-2 8.4 Anti-flip Language

It makes option 3 slightly more palatable, but I would still prefer option 2 as 
described below.

Owen

On Feb 22, 2014, at 3:28 PM, Scott Leibrand 
<[email protected]<mailto:[email protected]>> wrote:


There is another restriction already in 8.3, which reads "The source entity 
will be ineligible to receive any further IPv4 address allocations or 
assignments from ARIN for a period of 12 months after a transfer approval, or 
until the exhaustion of ARIN's IPv4 space, whichever occurs first."  In light 
of that, do you still see a problem with #3?

-Scott

On Sat, Feb 22, 2014 at 3:06 PM, Owen DeLong 
<[email protected]<mailto:[email protected]>> wrote:
Several options are being discussed regarding this proposal:

1. Use the existing last sentence as is and ask ARIN staff to be particularly 
watchful for seeming abuse and to bring such back to the community through 
regular Policy Experience Reports.  There was discussion about this option 
suggesting that by the time abuse was recognized and reported, and given 
limited existing free pool stocks and the extended policy development 
cycle....this option is mute.

2. Remove the clause 'and its subsidiaries' and or modify it in such a way as 
to mitigate the risk of a laundering of addresses through fraudulent transfers, 
but potentially limit the utility of organizations who may have complex 
organizations structures in use internationally.

3. Take an alternative tack and simply restrict the Inter-RIR re-org transfer 
of the 'recently issued block' only, allowing other existing blocks to be 
transferred without restriction by recent block acquisition. This alternative 
seems to have been expressed and supported in the recent Atlanta Public Policy 
Consultation.

It is my opinion that option 3 is perilous in that it allows a large resource 
holder to sell off their address space out of region while backfilling from the 
ARIN free pool.

As such, I am much more comfortable with option 2. One set of language that was 
suggested which I like is:

“…subsidiaries having been operational for a minimum of 18 months.”

While this might not prevent all possible subsidiary-based rinse-repeat abuse 
scenarios, it would at least prevent the obvious subsidiary created for this 
purpose scenario and certainly provides better protections than proposal number 
3.

I think option 1 is probably an unfair burden for the ARIN staff and makes 
policy vague in a way that would be difficult, if not impossible, to reliably 
enforce and may be even harder to defend in the event of litigation. This is 
strictly my own opinion as a member of the community and I have not discussed 
the matter with legal council or even the other members of the AC.

Owen


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