Re: IPv4 and Auctions

[John Curran <jcurran () arin net>]

On 26 Oct 2019, at 8:28 AM, Owen DeLong <owen () delong com<mailto:owen () delong com>> wrote:
…
The difference is that ARIN charges almost nothing for the rent, so what you basically are auctioning is the right too 
use a free appartment, which is worth money.
Even if you don't own the IP addresses, the right to use them is a tangible asset.

I’m sure someone from ARIN staff will correct me if I’m wrong about this, but I don’t believe that is the case.

ARIN registration is NOT (to the best of my knowledge):
+ A right to use
+ A property right in a set of integers
+ Any sort of right to have your numbers routed on the internet (or anywhere)
+ Any sort of exclusive right to control of a set of integers for a particular purpose

ARIN registration is (to the best of my knowledge):
+ A guarantee of unique association of a set of integers to your organization within a
cooperating set of databases collectively known as the RIR System.
+ A guarantee of certain property and control rights over said registration within that
system. (note that’s the registration, not the registered integers)
+ Unless you are a non-RSA legacy registrant, it is a contractual relationship between
you and ARIN (and by extension said RIR system) which provides both rights and
obligations on your conduct with respect to said registration.
+ The right and ability to update certain attributes in the records of your registration(s).

So ARIN doesn’t actually rent the right to use an apartment so much as a recording of the fact
that certain entities agree that your name goes on the door of said apartment.

Owen -

Actually, that’s quite close.  To be clear on this, I’ll point out that ARIN recognizes that those issued IP address 
blocks have several specific rights –

• The exclusive right to be the registrant of the resources within the ARIN database
• The right to use the number resources _within the ARIN database_
• The right to transfer the number resources pursuant to the community’s policies.

These rights are provided contractually to all parties with ARIN-issued resources, and ARIN will recognize and 
formalize the rights of those issued resources by ARIN’s predecessors (legacy resource holders) by entering into a 
registration services agreement with them if wish clear contractual rights over their resources.

Note that these rights cannot be assigned or transferred without ARIN’s consent and such consent may not be 
unreasonably withheld if consistent with the policies.

So, if by “the right to use them”, one is referring to being the one listed in the ARIN database for the address space 
and/or use ARIN services applicable to those address blocks, then that is indeed a contractual right, but it doesn’t 
get transferred or assigned except as the community policy states.  For example, redelegation by ISPs is clearly 
covered by ARIN policy, so we recognize such and even provide services specifically to support same.

If “the right to use them” is rather a reference to ability to route address blocks with your various ISP partners, 
then that’s really a question about the business practices of those accepting the routes…

Now, coincidentally and fortunately, the vast majority of ISPs choose to regard the data in the
RIR system as an important record of who they will accept prefix advertisements from, which
makes it much harder to use numbers that are not associated with your organization in the RIR system
for routing on the internet, but that’s actually a coincidental behavior of the ISPs and not actually
any sort of right, privilege, or ability issued or managed by ARIN.

Correct.   ARIN’s policies govern the administration of the number resources in the registry, and there is no 
requirement for resource holders to route their networks in any particular manner.   During the Anti-hijack policy 
discussion on arin-ppml () arin net<mailto:arin-ppml () arin net>,  I noted that if the community really wanted ARIN to 
require certain routing hygiene, that would require changing the RSA, and any changes to ARIN’s RSA going forward 
(outside of conformance to changing law) actually requires a member ratification vote…  (a particularly high hurdle, 
but potentially achievable if the community really feels that they want additional obligations in this regard.)

Thanks,
/John

John Curran
President and CEO
American Registry for Internet Numbers