Dear SIG members,

A new version of the proposal "prop-148-v003: 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


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prop-148-v003: Clarification - Leasing of Resources is not Acceptable

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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 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. 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.

Note: Leasing is defined as Providing Internet Number Resources for a 
price (paid in any form) or even for free, when not tied to a direct 
connectivity service or any other APNIC accepted justification of need.

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
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