I support this policy: I think that text being removed has reached the end of 
its useful life, and keeping it in place will do more harm than good in the 
future. 

Scott

> On Mar 21, 2017, at 10:31 AM, ARIN <[email protected]> wrote:
> 
> On 16 March 2017, the ARIN Advisory Council (AC) advanced the following Draft 
> Policy to Recommended Draft Policy status:
> 
> ARIN-2016-9: Streamline Merger & Acquisition Transfers
> 
> The text of the Recommended Draft Policy is below, and may also be found at:
> 
> https://www.arin.net/policy/proposals/2016_9.html
> 
> You are encouraged to discuss all Recommended Draft Policies on PPML
> prior to their presentation at the next ARIN Public Policy Consultation
> (PPC). PPML and PPC discussions are invaluable to the AC when
> determining community consensus.
> 
> The PDP can be found at:
> https://www.arin.net/policy/pdp.html
> 
> Draft Policies and Proposals under discussion can be found at:
> https://www.arin.net/policy/proposals/index.html
> 
> Regards,
> 
> Communications and Member Services
> American Registry for Internet Numbers (ARIN)
> 
> 
> 
> Recommended Draft Policy ARIN-2016-9: Streamline Merger & Acquisition 
> Transfers
> 
> Date: 21 March 2017
> 
> AC assessment of conformance with the Principles of Internet Number
> Resource Policy:
> 
> The proposal is technically sound and enables fair and impartial number 
> policy by ensuring that new organizations involved in mergers and 
> acquisitions may conduct such activities with a reduced procedural burden 
> from ARIN. The staff and legal review noted three issues, all of which have 
> been addressed. There is support for the proposal on PPML and concerns that 
> have been raised by the community regarding the proposal on PPML or elsewhere 
> have also been addressed.
> 
> Problem Statement:
> 
> In some 8.2 transfer situations, the current policy has the unwanted side 
> effect of encouraging organizations not to update registration data, thus 
> leaving the number resource in the name of a now defunct entity.
> 
> It is not uncommon for an entity which has bought another entity (with 
> existing number resources) to leave Organizational data (Whois) in the name 
> of the acquired company. The requirements in Section 8.2 put a justification 
> burden on the acquiring organization, which was a legitimate protection while 
> free pool assignments were available. It is worth revisiting Section 8.2 and 
> looking for opportunities to simplify the policy in the interest of improving 
> the registry data.
> 
> Consider the following:
> 
> 1. In the case where both organizations (acquirer, acquired) have justified 
> their existing number resources from an issuer (e.g. SRI-NIC, GSI, ARIN) 
> under the policies that were in force at the time of issuance, the number 
> resources have already been justified once.
> 
> 2. ARIN does not customarily require organizations holding address space to 
> document utilization except when they are asking ARIN to issue more space.
> 
> 3. Section 8.2 M&A is not asking ARIN to issue more space or provide 
> authorization to acquire space in an 8.3 transfer. It is simply updating 
> ARIN's database to reflect the current reality, that control of a company has 
> changed.
> 
> Language that speaks of required return or transfer of space is of 
> questionable enforceability in the context of the current RSA (section 6, 
> "ARIN has no right to revoke any Included Number Resources under this 
> Agreement due to lack of utilization by Holder").
> 
> Clauses that serve to scare organizations away from updating their 
> information are counter to the goal of maintaining good data in Whois.
> Policy should allow ARIN staff to concentrate finite resources on 
> ascertaining  chain of custody so as to minimize the chance of fraudulent 
> transfers rather than auditing space already issued.
> 
> Policy statement:
> 
> Delete the bullet point in NRPM 8.2 that reads:
> 
> For mergers and acquisition transfers, the recipient entity must provide 
> evidence that they have acquired assets that use the resources to be 
> transferred from the current registrant. ARIN will maintain an up-to-date 
> list of acceptable types of documentation.
> 
> Add this statement to list of conditions for clarity:
> 
> "The Internet number resources being transferred as part of an 8.2 transfer 
> will not be subject to an additional needs-based assessment during the 
> process of the 8.2 transfer."
> 
> Add this conditional to the bottom of 8.2 for linguistic clarity:
> 
> "AND one or more of the following:
> 
> The recipient must provide evidence that they have acquired the assets that 
> use the resources to be transferred from the current registrant.
> 
> OR
> 
> The recipient must show that they have acquired the entire entity which is 
> the current registrant."
> 
> Remove the following paragraph from Section 8.2 of the NRPM:
> 
> ARIN will proceed with processing transfer requests even if the number 
> resources of the combined organizations exceed what can be justified under 
> current ARIN transfer policy as defined in section 8.5. In that event, ARIN 
> will work with the resource holder(s) to transfer the extra number resources 
> to other organization(s) or accept a voluntary return of the extra number 
> resources to ARIN.
> 
> These four changes will leave Section 8.2 looking like this:
> 
> 8.2. Mergers and Acquisitions
> 
> ARIN will consider requests for the transfer of number resources in the case 
> of mergers, acquisitions, and reorganizations under the following conditions:
> 
> The current registrant must not be involved in any dispute as to the status 
> of the resources to be transferred.
> 
> The new entity must sign an RSA covering all resources to be transferred.
> 
> The resources to be transferred will be subject to ARIN policies.
> 
> The minimum transfer size is the smaller of the original allocation size or 
> the applicable minimum allocation size in current policy.
> 
> The Internet number resources being transferred as part of an 8.2 transfer 
> will not be subject to an additional needs-based assessment during the 
> process of the 8.2 transfer.
> 
> AND one or more of the following:
> 
> The recipient must provide evidence that they have acquired the assets that 
> use the resources to be transferred from the current registrant.
> 
> OR
> 
> The recipient must show that they have acquired the entire entity which is 
> the current registrant.
> 
> Comments:
> 
> Timetable for implementation: Immediate
> _______________________________________________
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