There is nothing in that statement that precludes apnic members from leasing 
out their space. Nor is there anything in policy that prevents it. I 
participated in that discussion on the transfer list and I suggest everybody 
review it carefully. In this case apnic staff continues  to muddy the waters by 
conflating justification fraud  with the act of leasing already acquired 
addresses. I note we do not have any word on Jordi's prior assertion that a 
fundamental change in usage  renders the address block revocable.Will apnic 
staff forbid the creation of an ROA by a member which includes the AS number 
they do not own?Under which policy will Apnic staff forbid the creation of such 
ROAs, as the secretariat threatened? An APNIC member has every right under 
contract and policy to change the use of his addresses and also to lease them 
out. Please please do not conflate the final /8 policies and justification 
fraud with actual leasing.  Fraud in justification has always been punishable 
in every registry. It's not the issue here.Regards,Mike ---- On Tue, 23 Aug 
2022 07:51:50 -0400  [email protected]  wrote ----
  
  
    Thanks for the clarification.
      The makes it very clear that what we are doing is just willing to
      make something that *already exist* clear in the policy text, for
      the avoidance of doubt of all members and fair usage of allocated
      resources by APNIC to those who really justify the need.
    Fernando
    
    On 23/08/2022 07:35, Srinivas (Sunny)
      Chendi wrote:
    
    
      
      Hi Jordi,
      
      Please see our comments inline...
      
      On 23/08/2022 9:40 am, JORDI PALET
        MARTINEZ wrote:
      
      
        
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          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.
        
      
      
      The same topic was discussed on the apnic-transfers mailing list
      sometime in June this year.
      
https://mailman.apnic.net/hyperkitty/list/[email protected]/thread/PDLAJK2JMT5RPILF4VZFH55PL4ROP5GG/
      
      I'm copying and pasting my colleague Vivek's response here.
      
      <quote>
      APNIC delegates IP addresses to Members based on their
      demonstrated need. What Members can do with that address space
      once it is no longer needed is impacted by policy requirements. I
      will provide two examples. 
      
      Example 1: Addresses delegated from the last /8 pool cannot be
      transferred for a minimum of five years. During that time, if the
      reason for the original request is no longer valid, the resources
      must be returned to APNIC. 
      https://www.apnic.net/community/policy/resources#8.0.-IPv4-Transfers
      
      https://www.apnic.net/community/policy/resources#4.0.-Resource-License
      
      
      So in this instance, if a Member leases out their IP addresses
      within five years of receiving the delegation from APNIC, they are
      clearly not needed for their original declared purpose and must be
      returned to APNIC. 
      
      Example 2: For addresses delegated to a Member more than five
      years ago, if a Member no longer has the need for the address
      space, APNIC policy says the Member can choose to transfer it to
      another organization or return it to APNIC. APNIC policy does not
      have provisions for leasing. So in the second example, APNIC
      Members leasing addresses would be doing so outside the policy
      framework and will not receive APNIC services such as whois
      registration and RPKI/ROA access related to those addresses. This
      in turn may make it difficult to freely utilise those addresses on
      the Internet, due to lack of clear authorisation and a reliance on
      the registered holder (lessor) to assist. Of course, if the
      addresses being leased were not delegated by APNIC, then the
      relevant RIR’s policies apply to those addresses.
      <unquote>
      
      Regards,
      Sunny
      APNIC Secretariat
      
      
      
        
          
          
             
             
            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
            -------------
            
https://aus01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.arin.net%2Fparticipate%2Fpolicy%2Fproposals%2F2022%2FARIN_prop_308_v2%2F&amp;data=05%7C01%7C%7C10362f529b0e4536949408da7b677a41%7C127d8d0d7ccf473dab096e44ad752ded%7C0%7C0%7C637957981611076664%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;sdata=uhhDD0kaOyJOxHiWa7Z%2BckfPwe9ohLQsidzS9u4BUHo%3D&amp;reserved=0
            
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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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_______________________________________________________________________

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Senior Advisor - Policy and Community Development

Asia Pacific Network Information Centre (APNIC) |  Tel: +61 7 3858 3100
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