Again - you assert that there is a problem without any proof that there is. You 
assert that the agreement is somehow not enforceable without this policy. This 
is completely incorrect. You assert that APNIC is presently powerless, but 
provide no proof that this is the case.

I can see this is getting nowhere at this point so I’ll leave it here.

Andrew

Get Outlook for iOS<https://aka.ms/o0ukef>
________________________________
From: JORDI PALET MARTINEZ via sig-policy <[email protected]>
Sent: Thursday, September 8, 2022 9:15:36 PM
To: [email protected] <[email protected]>
Subject: [sig-policy] Re: New version - prop-148: Clarification - Leasing of 
Resources is not Acceptable


Yes, that always happen. There are good and bad people in the world. Some 
people, as we have seen in other RIRs, has obtained resources with bad faith 
far beyond bending the rules. Some people have obtained resources with a 
justification of the need that was only a lie, or if was not a lie, failed the 
business model and changed the use of the resources, which is not allowed.



Nothing to be surprised again, and the RIRs must have the means to resolve that 
and make the membership agreement enforceable, which some times, may require 
policy clarifications as we are suggesting here.



Regards,

Jordi

@jordipalet







El 8/9/22, 12:59, "Andrew Yager" 
<[email protected]<mailto:[email protected]>> escribió:



I fail to see the logic in this argument. You are suggesting the membership 
agreement has no value and Is unenforceable.  This is not the case.



You are also suggesting that people are obtaining resources using fraudulent 
methods. At least in Australia, this is illegal. But I have seen no evidence 
that this is the case.



You are saying we need this policy because the existing framework is inadequate 
- but as of yet there is no evidence provided to support this assertion.



In the event that a need can be demonstrated, then we are still faced with all 
the other issues outlined.



Andrew



Get Outlook for iOS<https://aka.ms/o0ukef>

________________________________

From: JORDI PALET MARTINEZ via sig-policy <[email protected]>
Sent: Thursday, September 8, 2022 8:53:38 PM
To: [email protected] <[email protected]>
Subject: [sig-policy] Re: New version - prop-148: Clarification - Leasing of 
Resources is not Acceptable



And by the way, and this key with any lack of policy compliance. All the RIRs 
will always attempt to recover the situation in case of lack-of-compliance.



So, the address holders can always say, sorry, didn’t knew that this was my bad 
interpretation of the policy text. I will correct the situation immediately.



Then the RIR doesn't need to recover the resources.



An exception to that, in my opinion, is false documentation, which shows a 
clear bad faith when requesting resources. There have been some cases in RIPE 
of falsified passports, or other documents. No excuses for that.



Regards,

Jordi

@jordipalet







El 8/9/22, 12:50, "JORDI PALET MARTINEZ via sig-policy" 
<[email protected]<mailto:[email protected]>> escribió:



Hi Matthew,



The starting point here is that leasing is not allowed and this proposal is not 
changing it, just making sure that’s clearly understood by everyone.



If anyone is breaking “law” even if that has been happening for several years, 
do you believe the right thing is to continue ignoring that?



I feel that it is much better to amend the law text to ensure that everybody 
has the same understanding. And this is what we are doing.



The alternative is to change the law and declare and amnesty of those that 
bypassed the law for years. Do you think this is fair? You don’t think this is 
giving the sign that oh well we should ignore policies because they are not 
clear (even if we know that we are doing wrong), because an amnesty will come?





Regards,

Jordi

@jordipalet







El 8/9/22, 3:54, "Matthew Shearing" 
<[email protected]<mailto:[email protected]>> escribió:



Just wanted to chime in here and follow up on Mike's point (and those of 
several others).



What APNIC has done by its previous conduct is create a scarce asset collected 
in the hands of a number of large providers, with increasingly less being 
issued to small providers. As with any scarce asset in human history, this 
necessarily creates all the prerequisites for a fee market.



Just like real estate, vehicles and other commodities, leasing is a natural 
evolution of scarcity in an asset class with direct utility. Right now, IPv4 
blocks are like houses - some own them, but some don't have the capital 
resources to outright own the amount they need. Simply looking at the prices 
which IPv4 blocks are going for on the open market will make it clear that many 
smaller businesses are priced out.



Leasing represents a viable option for companies to access the blocks they need 
and pay manageable, monthly or yearly payments for the use of those blocks. 
Many businesses are reliant on these currently.



Saying that APNIC will outright ban leasing and that this will somehow benefit 
businesses is abjectly false. Not only will it disrupt many current business 
operations, but there is no guarantee that a market with more perverse 
incentives won't emerge afterwards.



In our view, APNIC has already demonstrated by its statements and conduct with 
this policy that they have little grasp on how (and why) asset markets evolve. 
They've also done nothing to dissuade us that the new 'status quo' after this 
policy change won't be worse than the current one - which operates relatively 
fine.



Practically, for APNIC to say there will be no meaningful damage to current 
users and businesses (who are APNIC members in their own right) it must answer 
the following questions:



•         What alternative does APNIC propose to the current IPv4 market and 
particularly, leasing options available to smaller companies and new entrants?

•         How will terminating leases currently on foot result in a better 
outcome for the businesses currently relying on them?

•         How will new IPv4 addresses be allocated, what timeframes and costs 
will be involved in this allocation?

•         Can APNIC give guarantees to current lessees who are reliant on IPv4 
address leases that they can continue to access those addresses or will have 
replacements of similar value, at less cost, instantly after the change is made?

•         Is APNIC prepared to be held liable in lawsuits or a class action for 
the damages incurred by this policy change? Has it considered this risk and 
informed members accordingly?



It appears that those that will not be affected by this policy or those who 
already have large IPv4 blocks are some of the largest proponents of it - which 
makes sense. It is easy to vote for a change if it's only others that will be 
affected.



However, there are a large number of SME businesses out there who rely on these 
leases to run their operations. For them, this isn't just some merely 
intellectual exercise. Rather, it's a question of hundreds of thousands, or 
even millions, of dollars.



It's their ability to remain operational. It's their employees' livelihoods and 
those of their families. It's a core part of how they operate and for many, the 
foundation which they've built their business on.



This policy change seems to almost be a 'policy for policies sake'. It is clear 
that the repercussions of this were either not considered, or not even known, 
as the policy notes listed 'nil' negative effects. That this is the opinion of 
APNIC (and it seems, of a significant portion of the community) is incredibly 
concerning, because it couldn't be further from the truth.



Many real businesses will be affected by this, with real people. And the 
flippancy with which many within APNIC are treating this proposal shows a 
concerning lack of empathy towards that - and a failure to grasp the nature of 
IPv4 addresses as a modern asset class.



Without the above questions answered, I don't see how this policy vote can go 
ahead - and I would implore everyone considering this policy to reject it 
outright. There may be issues with the current IPv4 paradigm but this is 
definitely not the solution.



Kind Regards



Matt Shearing
Chief Executive Officer

[https://www.oneqode.com/img/email-pin.png]

Brisbane, Australia (AEST) • [email protected]<mailto:[email protected]> • +61 
406 778 038

[OneQode™]<https://www.oneqode.com/>



[Follow us on LinkedIn]<https://www.linkedin.com/company/oneqode/>





From: Mike Burns <[email protected]>
Sent: Thursday, 8 September 2022 6:52 AM
To: 'Fernando Frediani' <[email protected]>; [email protected]
Subject: [sig-policy] Re: New version - prop-148: Clarification - Leasing of 
Resources is not Acceptable



Alas, Fernando, there is no alternative “drug” for people to live without IPv4.

Banning leasing hurts the smallest and poorest of companies most.



And you cannot elucidate any “major damages” suffered where leasing has 
actually, in reality, occurred for many years at RIPE.

Yet you use this evidence-free assertion as your major argument against leasing.

That some kind of serious damage will occur to the RIR system.



As a broker who as to talk to actual, real companies in need, who can’t afford 
to pay upfront, can you tell me what I should say when they ask me why leasing 
is forbidden?  If I say it’s to avoid “major damages” and they ask what they 
are, can you tell me?



What major damages?



Regards,
Mike





From: Fernando Frediani <[email protected]<mailto:[email protected]>>
Sent: Wednesday, September 7, 2022 4:33 PM
To: [email protected]<mailto:[email protected]>
Subject: [sig-policy] Re: New version - prop-148: Clarification - Leasing of 
Resources is not Acceptable



Do you understand the argument that certain drugs can alleviate certain pains 
but they remain forbidden because they cause a major damage to society in long 
term and there are alternatives for people be able to still live without have 
to use those type of damageable mechanisms. Companies can also live without 
that and still have other legally allowed mechanisms.

This discussion is unnecessary for this policy discussion as what it proposes 
is to make something *already forbidden* clear in to the text, not to discuss 
if leasing should exist or not.

If anyone opposes it please take attention to provide arguments and suggestions 
on how to address the issues raised about what the proposal really proposes.

Regards
Fernando

On 07/09/2022 14:12, Mike Burns wrote:

Hi Fernando,



Do you understand my argument that smaller business cannot afford the full 
upfront payment but can afford monthly lease payments?



Please address that simple argument by telling me how the small business 
benefits by not having the lease option, but only having the purchase option.



Regards,
Mike





From: Fernando Frediani <[email protected]><mailto:[email protected]>
Sent: Wednesday, September 7, 2022 1:01 PM
To: [email protected]<mailto:[email protected]>
Subject: [sig-policy] Re: New version - prop-148: Clarification - Leasing of 
Resources is not Acceptable



IP Leasing is already banned in most RIRs and should stay as is.

But yes it does help as it doesn't push even further up IPv4 pricing and makes 
it easier for these small companies to get IPv4 via the proper and allowed way 
which are transfers. Other then diverting totally the propose o IPv4 
Allocation, Leasing market contributes significantly to price increasing 
fueling the market with more demand for that type of very wrong thing.

RIPE is normally not a good example for certain policies which don't seem to 
have receptivity in discussions on all other RIRs.

There are still mechanisms that allow companies to get IP addressing either 
directly from the RIR, via Transfers which is a pretty common way or from the 
Upstream providers. People may not have got used yet to learn to live with less 
address and they may believe they need a bunch of address.

IP Leasing will never help small companies. The ones who really benefit from it 
are the IP broker companies who profit from them and also the resource holders 
which don't justify anymore to keep those addresses and are also profiting from 
something that should have been re-assigned directly to those who really need 
and justify for them in order to build Internet Infrastructure and Connectivity 
and instead are leasing a asset they don't own.

Fernando

On 07/09/2022 12:39, Mike Burns wrote:

Hi Fernando,



So your argument is that banning leasing actually helps smaller companies in 
their quest for IPv4?



Are you aware that RIPE has allowed leasing for many years but is still a 
functioning RIR whose IPv4 sale prices are not more expensive despite the 
history of leasing there?



Can you reconcile that with your argument that leasing will raise prices for 
both leasing and transfers?



Are you aware that it’s not always possible to get IPv4 blocks from the company 
that is providing you with connectivity?



Regards,
Mike







From: Fernando Frediani <[email protected]><mailto:[email protected]>
Sent: Wednesday, September 7, 2022 11:27 AM
To: [email protected]<mailto:[email protected]>
Subject: [sig-policy] Re: New version - prop-148: Clarification - Leasing of 
Resources is not Acceptable



This is exactly the opposite.

Allowing IP leasing to happen more than just tottaly divert the propose of IP 
assignments by RIRs it make it bad specially for smaller companies as it 
increases the cost for both leasing and transfers in long term. The cost of 
leasing is based on the transfer and if leasing is allowed then transfer prices 
will  always go up which makes it even harder for smaller companies to go into 
the market.

Any form of IP leasing without a direct connection relationship to provide a 
connectivity service makes it more expensive for smaller companies to get IP 
addresses to operate.

Fernando

On 07/09/2022 11:15, Mike Burns wrote:

Hi Jordi,



It’s plain you feel that we should do all possible to raise the price of IPv4 
and make it unattainable for small business in the vain hope that this will 
drive IPv6 adoption.



I don’t think making IPv4 more difficult to acquire is the job of the RIR 
system.



You have not addressed the inability of smaller companies to acquire necessary 
IPv4 blocks if you ban leasing.

Is that something you are comfortable with, in pursuit of the IPv6 grail?

It’s okay with you that this policy prevents small companies from growing?



Regards,
Mike





From: JORDI PALET MARTINEZ via sig-policy 
<[email protected]><mailto:[email protected]>
Sent: Wednesday, September 7, 2022 10:11 AM
To: [email protected]<mailto:[email protected]>
Subject: [sig-policy] Re: New version - prop-148: Clarification - Leasing of 
Resources is not Acceptable



Actually, I must disagree …



If organizations having unused resources, they need to transfer them or return 
them to the RIR. If prices keep going high, that could encourage faster IPv6 
adoption, then transfer prices will go down, up to “no value”. It takes time, 
but it is just market.



Those that have more money, have more facilities to do a faster transition and 
not bother about IPv4.



Regards,

Jordi

@jordipalet







El 7/9/22, 16:05, "Mike Burns" <[email protected]<mailto:[email protected]>> 
escribió:



Hello,



Per Gaurav’s statement that “only those with millions of dollars can think of 
getting ips”, this community should oppose this policy.



Because the only way small companies can afford to get ips today is by leasing 
them.  The same way the small company can’t afford to purchase a big office 
building but instead rents an office. Leasing is the only way to finance IPv4 
acquisitions today. No bank or other entity that I am aware of will do it. 
Purchasing addresses requires full upfront payment, but leasing allow for much 
smaller monthly payments.



If this community wants to ensure only the largest and richest companies can 
acquire new addresses, ban leasing.



But if the community tries to ban something with such a large business 
motivation behind it, it will find itself struggling against a powerful foe.



And for what purpose do we punish the small businesses?  Leasing puts addresses 
in the hands of those who need them to build and operate networks. Isn’t that 
the primary goal of the RIR system?



Regards,

Mike





El 2/9/22, 9:23, "Gaurav Kansal" 
<[email protected]<mailto:[email protected]>> escribió:



Hello everyone,



In my opinion, even Trading of IPs (leave apart the lease for making dollars) 
in the name of transfers must be stopped.

If organisation doesn’t need IPs , then those must be returned back so that 
smaller organisations can get it from the RIR.



Currently, only the one which have millions of dollars can think of getting 
IPs. In today’s scenario, no one can start the Data Centre, ISP business 
without investing millions in IPs. Even education and research org doesn’t have 
an option to get IPs from RIR.



This is like horse trading and isn’t a good practice for the community as a 
whole.



Regards,

Gaurav Kansal





On 02-Sep-2022, at 12:20, 
[email protected]<mailto:[email protected]> wrote:



Dear Team,



As Mr. Satoru, mentioned there are changes, but if carefully implemented in 
phased manner, unauthorised leasing can be stopped.



For example in first phase, leasing among countries can be stopped, if the 
owner company doesn't provide any services beyond its home country. For example 
if a company in India doesn't have any operation in Singapore or Japan , can't 
lease resources to those companies in Singapore or Japan. This can be verified 
by taking business registration documents of both lease and lessor.

Once this is done same may be granularized at RIR level, where in country like 
India, leasing can be restricted to the licensed service area for service 
provider within their designated service area.

This may stop majority of issues, barring few exceptions.

Some more brainstorming is required for better understanding and precise 
implementation.



Regards,



Rajesh Panwala

For Smartlink Solutions Pvt Ltd

+91-9227886001

+91-9426110781



On Fri, Sep 2, 2022, 10:44 AM Tsurumaki, Satoru 
<[email protected]<mailto:[email protected]>> wrote:

Dear Colleagues,

I am Satoru Tsurumaki from Japan Open Policy Forum Steering Team..

I would like to share key feedback in our community for prop-148,
based on a meeting we organised on 29th Aug to discuss these proposals.

Many participants support the intent of the proposal but felt that
implementation would be challenging.

(comment details)
- It is undisputed that the current policy allows for the distribution
  of IP addresses according to the actual demand of one's own
  organization or directly connected customers, and does not allow for
  the leasing of IP addresses.
- I think this proposal would be useful if the concept of leasing is
  accurately defined.
- Leasing IP addresses that damage the accuracy of whois information
  should not be allowed, but I find it difficult to implement.


Regards,

Satoru Tsurumaki / JPOPF Steering Team

2022年8月26日(金) 17:27 Shaila Sharmin 
<[email protected]<mailto:[email protected]>>:
>
> Dear SIG members,
>
> A new version of the proposal "prop-148-v002: Clarification - Leasing of
> Resources is not Acceptable" has been sent to the Policy SIG for review.
>
> Information about earlier versions is available from:
>
> http://www.apnic.net/policy/proposals/prop-148
>
> You are encouraged to express your views on the proposal:
>
>   - Do you support or oppose the proposal?
>   - Is there anything in the proposal that is not clear?
>   - What changes could be made to this proposal to make it more effective?
>
> Please find the text of the proposal below.
>
> Regards,
> Bertrand, Shaila, and Ching-Heng
> APNIC Policy SIG Chairs
>
>
> ----------------------------------------------------------------------
> prop-148-v002: Clarification - Leasing of Resources is not Acceptable
> ----------------------------------------------------------------------
>
> Proposer: Jordi Palet Martinez 
> ([email protected]<mailto:[email protected]>)
>            Amrita Choudhury 
> ([email protected]<mailto:[email protected]>)
>            Fernando Frediani ([email protected]<mailto:[email protected]>)
>
>
> 1. Problem statement
> --------------------
> RIRs have been conceived to manage, allocate and assign resources
> according to need, in such a 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 delegated by APNIC or an NIR,
> the justification of the need implies the need to use on their own
> infrastructure and/or network connectivity services provided directly to
> customers. As a result, any form of IP address leasing is unacceptable,
> 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.
>
> APNIC may proactively investigate those cases and also initiate the
> investigation in case of reports by means of a form, email address or
> other means developed by APNIC.
>
> If any form of leasing, regardless of when the delegation has been
> issued, is confirmed by an APNIC investigation, it will be considered a
> policy violation and revocation may apply against any account holders
> who are leasing or using them for any purposes not specified in the
> initial request.
>
>
> 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://www.arin.net/participate/policy/proposals/2022/ARIN_prop_308_v2/
> https://politicas.lacnic.net/politicas/detail/id/LAC-2022-2/language/en
> _______________________________________________
> sig-policy - https://mailman.apnic.net/[email protected]/
> To unsubscribe send an email to 
> [email protected]<mailto:[email protected]>



--
--
Satoru Tsurumaki
BBIX, Inc
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