ARIN-prop-308: Leasing not Intended

Date: 28 March 2022

Proposal Originator: Fernando Frediani, Jordi Palet Martínez, Noah Maina

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.

IPv6 Policy (section 6.4.1.) explicitly mention that address space is not a property. This is also stated in the RSA (section 7.) for all the Internet Number Resources.

However, with the spirit of the IPv4 allocation policies being the same, there is not an equivalent text for IPv4, neither for ASNs.

When the justification of the need disappears, for whatever reasons, the most honorable thing would be to return said addresses to the RIR. An alternative is the transfer of these resources and we have appropriate policies for that.

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.

Further to that, policies for IPv4 and IPv6 allocations, clearly state that allocations are based on justified need and not solely on a predicted customer base. Similar text can be found in the section related to Transfers (8.1).

Consequently, resources not only aren’t a property, but also, aren’t allocated for leasing purposes, only for justified need of the resource holder and its directly connected customers.

Therefore, and so that there are no doubts about it, it should be made explicit in the NRPM that the Internet Resources should not be leased “per se”, but only as part of a direct connectivity service. At the same time, section 6.4.1. should be moved to the top of the NRPM (possibly to section 1. “Principles and Goals of the American Registry for Internet Numbers (ARIN)”.

Policy statement:

Actual Text (to be replaced by New Text):

6.4.1. Address Space Not to be Considered Property

It is contrary to the goals of this document and is not in the interests of the Internet community as a whole for address space to be considered freehold property.

The policies in this document are based upon the understanding that globally-unique IPv6 unicast address space is allocated/assigned for use rather than owned.

New Text

1.5. Internet Number Resources Not to be Considered Property

It is contrary to the goals of this document and is not in the interests of the Internet community as a whole for address space to be considered freehold property.

The policies in this document are based upon the understanding that Internet Number Resources are allocated/assigned for use rather than owned.

ARIN allocate and assign Internet resources in a delegation scheme, with an annual validity, renewable as long as the requirements specified by the policies in force at the time of renewal are met, and especially the justification of the need.

Therefore, the resources can’t be considered property.

The justification of the need, generically in the case of addresses, implies their need to directly connect customers. Therefore, the leasing of addresses is not considered acceptable, nor does it justify the need, if they are not part of a set of services based, at least, on direct connectivity.

Even in cases of networks not connected to the Internet, the leasing of addresses is not admissible, since said sites can request direct assignments from ARIN and even in the case of IPv4, use private addresses or arrange transfers.

Timetable for implementation: Immediate 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, APNIC and LACNIC, the staff has confirmed that address leasing is not considered as valid for the justification.