A lease policy should never exist in my opinion and registries should stand strong against it for the simple reason that IPs are not assets or something that belong to a company for it to lease.

Is it always necessary to remind that IP addresses are meant to be used by the resource holders who  justified for that ? If someone is leasing it it obviously means it does not need and justify anymore for that IP space and any RIR should recover them immediately. If such a policy doesn't exist on its terms it should exist and should be discussed to make it sooner. I would recommend some Jon Postel reading to those who believe "it is Ok to lease IPs" as if they were they very own asset as a router or a server that you buy with a invoice and you do whatever you like with it.

This type of thing goes pretty much against concepts of conservation and justification. Imagine if someone asked a RIR more IP address and may justify as "I need them in order to lease them". That's what a lease policy would walk towards to.

As I mentioned in the other message, the fact the people do anyway and the whois doesn't get updated is **less important** than having people monetizing IP addresses in such way while there are others on waiting lists that truly justify for those addresses.

Regards
Fernando

On 29/05/2019 18:02, Mike Burns wrote:

Hi Robert,

The problem of leasing space before the 12 month waiting period, so as **only** to avoid that period, is small in my experience.

After a year, any such lessor could sell if they wanted to, and they have the same sell/lease incentives as any other ARIN holder.

Do you have evidence that people are monetizing waiting-list addresses prior to the 12 month period by leasing them?

What you say below, however, is completely correct.

I have tried to direct the community towards the glaring absence of a lease policy at any registry.

I believe it’s time for such a policy, given the market circumstances we find ourselves in.

Such a policy would allow for open leasing, with certain recording requirements for abuse contacts of the lessee, etc.

I think such a policy would be in-scope and would yield, in a negative way, to the desired results of the anti-BGP hacking policy.

Regards,

Mike

*From:* Robert Clarke <[email protected]>
*Sent:* Wednesday, May 29, 2019 4:24 PM
*To:* Mike Burns <[email protected]>
*Cc:* Fernando Frediani <[email protected]>; arin-ppml <[email protected]> *Subject:* Re: [arin-ppml] Waiting List IPv4 blocks transferred after issuance

Hello Mike,

Why are you using John's "waiting list IPv4 blocks transferred" numbers as a baseline for the /19 numbers? This is completely arbitrary and doesn't give any scale as to the problem with fraud. See my earlier reply to John's email in the other thread:

"Thanks for sharing. I'd like to note that it can be dangerous to use the blocks transferred via 8.2/8.3/9.4 as a metric for abuse. A fraudster that gets past ARIN's scrutiny and obtains IPs with fraudulent information is probably smart enough to lease their IPs as opposed to selling the space outright. There is a huge market for leased space, and those deals happen behind closed doors with no oversight from ARIN. IP addresses go for $0.2-0.5/mo depending on term/IP reputation/size which could lead to $XX,XXX in illicit revenue with no risk of ARIN's scrutiny which would normally occur during the transfer process."

Thanks,

Robert Clarke



    On May 29, 2019, at 8:13 AM, Mike Burns <[email protected]
    <mailto:[email protected]>> wrote:

    Hi Fernando,

    Thanks for the discussion.

    Many feel as you do, that unused addresses should be returned to
    ARIN for subsequent distribution to those in need.

    Unfortunately, that policy was not successful in bringing unused
    addresses into actual use by those in need.

    The community decided to harness the profit motive to incentive
    this process, and by all accounts it is working.

    Unfortunately the profit motive also incentivizes fraudulent
    plundering of the waiting list pool.

    So I am happy to discuss the correct balancing of things to
    prevent fraud but allow the market to continue to drive us towards
    the desirable ends of accurate registration and efficient use.

    Since the /19 is the threshold number of sorts for flipping, I
    could accept a /20 as the maximum size.

    I think a 2 year wait is reasonable, but I don’t see the
    additional benefit as worth the distinction of ARIN space into
    more classes.

    And making it more complicated with multiple waiting periods is
    even less desirable, IMO.

    Regards,
    Mike

    *From:*ARIN-PPML <[email protected]
    <mailto:[email protected]>>*On Behalf Of*Fernando Frediani
    *Sent:*Wednesday, May 29, 2019 10:50 AM
    *To:*[email protected] <mailto:[email protected]>
    *Subject:*Re: [arin-ppml] Waiting List IPv4 blocks transferred
    after issuance

    On 29/05/2019 11:31, Mike Burns wrote:

        Orgs will wait out any period, sitting with unused addresses
        until they reach the resale date. Not efficient use.

    If it's not a legacy resource and if ARIN gets to know about it,
    it may just recover this addresses even if the resource holder is
    paying it correctly. That's how it should work.




        People will lease unused addresses to others and Whois
        accuracy will suffer if they can’t resell them. Not accurate
        registration.

    If people lease they prove they have no use for the addresses and
    again ARIN should recover them at any time. If whois is
    inaccurate, well it is their fault and not policies fault. They
    must bind to the current rules not the other way round.




        I think we should give everybody currently on the list up to a
        /19 and then restrict new entries to a /22.

    Fair to discuss this scenario, although I still think /19 is too
    much. Agree on /22 for new entries.


        I think a 5 year resale wait is too long, based on the paltry
        resales of prior waiting-list subnets smaller than /19.

    It may be long, but 2 years seems a little short and 'acceptable'
    for a fraudster. Perhaps something in between.



        I support a /22 restriction for new entrants, a /19 max for
        current list members, and maintenance of the 12 month wait for
        simplicity’s sake.

    What about discuss /22 for new entrants, /20 for current list
    members and 36, 42 or 48 months for transfers ? Seems more
    reasonable in my view and cover most aspects of this discussion.





        Regards,
        Mike

        *From:*ARIN-PPML<[email protected]>
        <mailto:[email protected]>*On Behalf Of*Fernando Frediani
        *Sent:*Wednesday, May 29, 2019 8:51 AM
        *To:*[email protected] <mailto:[email protected]>
        *Subject:*Re: [arin-ppml] Waiting List IPv4 blocks transferred
        after issuance

        +1

        On 28/05/2019 23:52, Owen DeLong wrote:

            Mike,

            Yes and no. I believe that the lack of legacy holders for
            any blocks issued under 4.1.8 reduces the need for the market.

            Defunct organizations can easily be reclaimed in this
            space because they stop paying their ARIN bill.

            Eliminating the resale value of these addresses won’t
            really encourage squatting on them and limiting the size
            of organization and size of block that can benefit from
            4.1.8 further helps to reduce the potential for hoarding.

            I realize that as a broker, any address that can’t be
            monetized is a lost opportunity for your organization, but
            I think there’s plenty of addresses out there that haven’t
            been processed through 4.1.8, so I don’t think limiting
            the resale potential of such blocks to reduce fraud is a
            bad idea.

            Owen





                On May 28, 2019, at 12:46 , Mike Burns
                <[email protected] <mailto:[email protected]>> wrote:

                The percentages of blocks transferred takes a
                significant leap at the /19 size.

                Below that, the percentages are all below 7%.

                At /19 and above, the percentages are all above 21%.

                Seems like a natural demarcation for maximum block
                size, but prices do continue to rise.

                While we want to fight fraud, we should still remember
                the underlying reasons for the Ipv4 transfer market
                apply to these addresses as well.

                That is, the market provides incentives for efficient
                use and accurate registration.

                Regards,
                Mike

                *From:*ARIN-PPML <[email protected]
                <mailto:[email protected]>>*On Behalf Of*John
                Curran
                *Sent:*Tuesday, May 28, 2019 1:53 PM
                *To:*ARIN-PPML List <[email protected]
                <mailto:[email protected]>>
                *Subject:*[arin-ppml] Waiting List IPv4 blocks
                transferred after issuance
                *Importance:*High

                Folks -

                It occurred to me that it might be useful to have a
                quick summary of waiting list blocks issued and
                subsequently transferred.

                Attached is the distribution (count per prefix size)
                of all blocks that have been issued via ARIN's waiting
                list policy and subsequently transferred via NRPM
                8.2/8.3/8.4 policy.

                FYI,

                /John

                John Curran

                President and CEO

                American Registry for Internet Numbers

                <image001.png>

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