On 19 March 2020, the ARIN Advisory Council (AC) advanced the following
Draft Policy to Recommended Draft Policy status:
ARIN-2019-12: M&A Legal Jurisdiction Exclusion
The text of the Recommended Draft Policy is below, and may also be found at:
https://www.arin.net/participate/policy/drafts/2019_12/
You are encouraged to discuss all Recommended Draft Policies on PPML
prior to their presentation at the next ARIN Public Policy Consultation
(PPC). PPML and PPC discussions are invaluable to the AC when
determining community consensus.
The PDP can be found at:
https://www.arin.net/participate/policy/pdp/
Draft Policies and Proposals under discussion can be found at:
https://www.arin.net/participate/policy/drafts/
Regards,
Sean Hopkins
Policy Analyst
American Registry for Internet Numbers
Recommended Draft Policy ARIN-2019-12: M&A Legal Jurisdiction Exclusion
AC Assessment of Conformance with the Principles of Internet Number
Resource Policy:
This policy enables fair and impartial number administration as it
provides clear guidance regarding the impact of merger, acquisition or
reorganization activity to the community. It is technically sound and
has community support.
Problem Statement:
Merger and acquisition activity sometimes results in a surviving legal
entity that is not in ARIN service region, but may prefer to continue
the pre-existing relationship with ARIN.
Example: Imagine a case where a global company has decided to
discontinue service in the ARIN service region (shuttering ARIN region
offices laying off ARIN region employees, and canceling ARIN region
customers) and repurpose the network resources and number resources in
the rest of its global footprint. During restructuring the company
concentrates its holdings in its European subsidiary, and then dissolved
its US legal entity.
Imagine a case where a global company has decided to divest its service
in the ARIN region (selling all ARIN region offices, all ARIN region
network assets, all ARIN service region customers, all number resources
used in the ARIN (associated with previous noted sale of network and
customers), but retaining ARIN issued resources in use outside of the
ARIN service region. During restructuring the company concentrates its
holdings which are not in us in the ARIN service region in its European
subsidiary, and then sells off its US legal entity (including the
network, customers, addresses in use, etc) dissolved its US legal entity.
Policy Statement:
Add the following to section 8.2
Mergers, acquisitions, and reorganization activity resulting in the
surviving entity ceasing to have a real and substantial connection with
the ARIN region shall be permitted to continue holding any numbering
resources issued (directly or indirectly) by ARIN prior to the merger,
acquisition or reorganization activity, but shall not qualify for any
additional numbering resources (directly or indirectly) from ARIN,
unless and until it once again has a real and substantial connection
with the ARIN region as required by the Numbering Resource Policy Manual.
Timetable for Implementation: Immediate
Anything Else:
This proposal may be overtaken by a more general approach to ARIN
membership legal jurisdiction exclusion.
To clarify scope, a legal entity present within the ARIN service region,
and a current ARIN RSA executed with that entity, is necessary to
receive allocations or assignments from ARIN. Therefore in the scenario
postulated in the problem statement, the organization would have to
re-establish itself within the ARIN service region to receive additional
resources from ARIN, while it can continue to hold the allocations or
assignments made prior to any merger, acquisition, or reorganization
activity.
_______________________________________________
ARIN-PPML
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