Hi Mike,

 

 

 

 

 

 

In at least, LACNIC and AFRINIC, it has been made clear by staff, that leasing 
is not a valid justification for getting resources, *THE SAME as in APNIC*, so 
if you use that as a justification, the request is denied. If you change the 
“usage” after the request is passed, then you’re bypassing the original 
justification, which is also *disallowed*.

 

I will let the secretariat to confirm if leasing is allowed or not, actually 
responding to your points on APNIC policies, even if this policy doesn't reach 
consensus. However, in my opinion the policy manual must be clear enough so 
nobody can interpret that something is not allowed when actually is not.

 

 

Regards,

Jordi

@jordipalet

 

 

 

El 22/8/22, 12:17, "Mike Burns" <[email protected]> escribió:

 

There are a number of problems with this policy.

 

First let’s start with Jordi stating the policy is just a clarification of fact.

If so, why is it necessary? Actually it is not a fact as leasing is occurring 
in APNIC and there is nothing in policy preventing it.  So this needs to be 
considered as a change in policy.

 

Second, there are inaccuracies in the verbiage associated with the policy, 
particularly in reference to the status of leasing at other RIRs.  How can you 
make the statement “ In other RIRs, the leasing of addresses is not authorized 
either and since it is not explicit in their policy manuals…”?

 

Are you unilaterally deciding that things which are not mentioned in policy are 
by definition “unauthorized”? I think this is wrong, and it’s better to 
consider things as authorized unless they are forbidden by policy.  However, 
either way there is no language in any RIR regarding leasing and you can’t make 
assumptions based on your own feelings. 

 

You are also wrong in stating that “Nothing is currently mentioned in RIPE 
about this and it is not acceptable as a justification of the need.” In actual 
fact, RIPE will accept leased-out addresses as justification of need in the 
only case where RIPE actually has a needs test, and that is with inter-regional 
transfers sourced in ARIN.  It bears remembering that RIPE simply has no needs 
test for transfers and this has been the policy for many years.  You may wonder 
what the point of a needs-test for transfers is, since the recipients are 
paying for the addresses.

 

ARIN staff has made it known that leasing addresses is not against policy at 
all, but leased-out addresses can’t be used to justify transfers. However a 
policy explicitly allowing leased-out addresses to be used as justification is 
under consideration.

 

Also leases can be used to justify addresses in ARIN if any tiny connectivity 
is created between the lessor and lessee. For example, a small VPN can be 
created, even though it carries no (or nearly no) traffic. If you want to get 
technical, the lessor and the lessee both advertise the block, but the lessor 
advertises a longer and more expensive route than the lessee, who will receive 
all the traffic except for any loose packets that find their way to the lessor, 
who will send them down the tunnel to the lessee.

 

The issue of retention of a needs test should be reconsidered by the APNIC 
community in the face of evidence garnered from the RIPE experiment. RIPE has 
had no needs test and APNIC had also removed the needs-test for transfers but 
only restored it at the behest of ARIN, who at the time was the only source for 
desperate APNIC members faced with APNIC exhaust.  Now there are other sources 
for inter-regional transfers to APNIC, and APNIC can take the path of RIPE in 
performing needs test only for inbound ARIN transfers so that source would not 
be precluded. So why not return to APNIC’s previous position of removing the 
needs test from transfers?

 

Leasing is a natural progression of the IPv4 market that provides benefits to 
both lessee and lessor, and that is why it is inevitable and why it exists 
today.  There are those who hold unused addresses but who don’t want to sell 
for some reason. There are those who need IPv4 but who can’t afford to pay for 
it all at once. There are those with a temporary need. Leasing is the answer 
for the smaller organizations that need IPv4. There are no addresses left in 
the free pool, so it’s either buy or lease. No other options.

 

Today APNIC (and ARIN and RIPE) will allow existing address holders to lease 
their blocks to non-connected customers. This is not a policy violation and 
addresses can’t be revoked for reasons of utilization or non-utilization. I 
believe that contra this policy, leasing should be authorized explicitly and 
that leased out addresses in-use on an operational network should logically be 
accepted as justification, because does it really matter whose network they are 
used on? Isn’t the salient point that they are in use?

 

I am against this policy.

 

Regards,
Mike Burns

 

 

 

 

 

 

From: JORDI PALET MARTINEZ via sig-policy <[email protected]> 
Sent: Monday, August 22, 2022 9:21 AM
To: Srinivas (Sunny) Chendi <[email protected]>; [email protected]
Subject: [sig-policy] Re: prop-148-v001: Leasing of Resources is not Acceptable

 

Hi Sunny, all,

 

In my opinion because the policy is just a clarification of a fact, it doesn’t 
change the situation for non-LIR/ISP account holders. Further to that, direct 
assignments from APNIC can’t be further sub-assigned, so clearly this disallows 
any type of “business” with addresses for those account holders. Do you think 
that’s sufficiently clear or do you think a small text clarification in the 
proposal is needed?

 

Regarding your 2nd point, there is not already a generic contact email to let 
know APNIC if anything is wrong regarding policy compliance? It will be 
surprising that today anyone discovers some breach and can’t report it, so this 
will also apply the same to this proposal. Again, if you believe a text 
clarification is needed, we can make a new version for that.

 

Finally, regarding your 3rd question, in my understanding the policy manual 
apply to *all the resources* unless we state otherwise. So not only those after 
being implemented are subjected to this proposal. And once more, the proposal 
is only a clarification, not changing what is the current reality. Anyway, we 
are happy to state it more clearly if needed.

 

Tks!

 

Regards,

Jordi

@jordipalet

 

 

El 22/8/22, 2:45, "Srinivas (Sunny) Chendi" <[email protected]> escribió:

 

Hi all, 

This is the secretariat's impact assessment for prop-148-v001, which is also 
available on the proposal page.

    http://www.apnic.net/policy/proposals/prop-148

APNIC notes that this proposal suggests explicitly stating in the APNIC 
Internet Number Resources policy document that leasing of IP addresses is 
not permitted in the APNIC region.

Clarifications:

Is this proposal restricted to LIRs/ISPs, or does it apply to all APNIC 
account holders?

The proposal does not specify how an APNIC investigation should be initiated. 
Should there be a form to report this, similar to IRT escalation?

Does this proposal apply to all existing allocations or only those delegated 
after the policy is implemented?

Implementation:

This proposal may require changes to the system.

If this proposal reaches consensus, implementation may be completed within 
3 months.

Regards,
Sunny
APNIC Secretariat

On 11/08/2022 5:01 pm, chku wrote:
Dear SIG members,
 
The proposal "prop-148: Leasing of Resources is not Acceptable" has been 
sent to the Policy SIG for review.
 
It will be presented at the Open Policy Meeting (OPM) at APNIC 54 on 
Thursday, 15 September 2022.
 
    https://conference.apnic.net/54/program/schedule/#/day/8
 
We invite you to review and comment on the proposal on the mailing list 
before the OPM.
 
The comment period on the mailing list before the OPM is an important 
part of the Policy Development Process (PDP). We encourage you to 
express your views on the proposal:
 
  - Do you support or oppose this proposal?
  - Does this proposal solve a problem you are experiencing? If so,
    tell the community about your situation.
  - Do you see any disadvantages in this proposal?
  - Is there anything in the proposal that is not clear?
  - What changes could be made to this proposal to make it more effective?
 
Information about this proposal is appended below as well as available at:
 
    http://www.apnic.net/policy/proposals/prop-148
 
Regards,
Bertrand, Shaila, and Ching-Heng
APNIC Policy SIG Chairs
 
---------------------------------------------------------------
 
prop-148-v001: Leasing of Resources is not Acceptable
 
----------------------------------------------------------------
 
Proposer: Jordi Palet Martinez ([email protected])
          Amrita Choudhury ([email protected])
          Fernando Frediani ([email protected])
 
 
1. Problem statement
--------------------
RIRs have been conceived to manage, allocate and assign resources according to 
need, in such way that a LIR/ISP has addresses to be able to directly connect 
its customers based on justified need. Addresses are not, therefore, a property 
with which to trade or do business.
 
When the justification of the need disappears or changes, for whatever reasons, 
the expected thing would be to return said addresses to the RIR, otherwise 
according to Section 4.1. (“The original basis of the delegation remains 
valid”) and 4.1.2. (“Made for a specific purpose that no longer exists, or 
based on information that is later found to be false or incomplete”) of the 
policy manual, APNIC is not enforced to renew the license. An alternative is to 
transfer these resources using the appropriate transfer policy.
 
If the leasing of addresses is authorized, contrary to the original spirit of 
the policies and the very existence of the RIRs, the link between connectivity 
and addresses disappears, which also poses security problems, since, in the 
absence of connectivity, the resource holder who has received the license to 
use the addresses does not have immediate physical control to manage/filter 
them, which can cause damage to the entire community.
 
Therefore, it should be made explicit in the Policies that the Internet 
Resources should not be leased "per se", but only as part of a direct 
connectivity service.
 
The existing policies of APNIC are not explicit about that, however current 
policies do not regard the leasing of addresses as acceptable, if they are not 
an integral part of a connectivity service. Specifically, the justification of 
the need would not be valid for those blocks of addresses whose purpose is not 
to directly connect customers of an LIR/ISP, and consequently the renewal of 
the annual license for the use of the addresses would not be valid either. 
Sections 3.2.6. (Address ownership), 3.2.7. (Address stockpiling) and 3.2.8. 
(Reservations not supported) of the policy manual, are keys on this issue, but 
an explicit clarification is required.
 
 
2. Objective of policy change
-----------------------------
Despite the fact that the intention in this regard underlies the entire Policy 
Manual text and is thus applied to justify the need for resources, this 
proposal makes this aspect explicit by adding the appropriate clarifying text.
 
 
3. Situation in other regions
-----------------------------
In other RIRs, the leasing of addresses is not authorized either and since it 
is not explicit in their policy manuals either, this proposal will be presented 
as well.
 
Nothing is currently mentioned in RIPE about this and it is not acceptable as a 
justification of the need. In AFRINIC and LACNIC, the staff has confirmed that 
address leasing is not considered as valid for the justification. In ARIN it is 
not considered valid as justification of need.
 
A similar proposal is under discussion in LACNIC and ARIN.
 
4. Proposed policy solution
---------------------------
5.8. Leasing of Internet Number Resources
 
In the case of Internet number resources, the justification of the need implies 
the need to directly connect customers. As a result, any form of IP address 
leasing is not considered acceptable, nor does it justify the need, if it is 
not part of a set of services based, at the very least, on direct connectivity. 
Even for networks that are not connected to the Internet, leasing of IP 
addresses is not permitted, because such sites can request direct assignments 
from APNIC or the relevant NIR and, in the case of IPv4, use private addresses 
or arrange market transfers.
 
If any form of leasing is confirmed by an APNIC investigation, APNIC may revoke 
the IP resources of account holders who are leasing or using them for any 
purposes not specified in the initial request.
 
This includes, but not limited to, the following: 
 - Removing delegations from the Whois database.
 - Removing related ROAs.
 - Stop providing APNIC services.
 
Members of the NIR are subject to the same policy.
 
 
5. Advantages / Disadvantages
-----------------------------
Advantages:
Fulfilling the objective above indicated and making the policy clear.
 
Disadvantages:
None.
 
 
6. Impact on resource holders
-----------------------------
None.
 
 
7. References
-------------
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_______________________________________________________________________
 
Srinivas (Sunny) Chendi (he/him)
Senior Advisor - Policy and Community Development
 
Asia Pacific Network Information Centre (APNIC) |  Tel: +61 7 3858 3100
PO Box 3646 South Brisbane, QLD 4101 Australia  |  Fax: +61 7 3858 3199
6 Cordelia Street, South Brisbane, QLD          |  http://www.apnic.net
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