IPv4 Mergers, Acquisitions, Reorganizations and Relocations

LAC-2019-2-v1 LAC-2019-2-v2 Vs
References:
New
Deleted
Modified
Authors

Name: Jordi Palet Martinez
Email: jordi.palet@theipv6company.com
Organization: The IPv6 Company
Name: Edwin Salazar
Email: edwin.salazar@wifitelecom.ec
Organization: Wifitelecom
Name: Edmundo Cázarez
Email: edmundo.cazarez@nic.mx
Organization: NIC.MX

Name: Jordi Palet Martinez
Email: jordi.palet@theipv6company.com
Organization: The IPv6 Company
Name: Edwin Salazar
Email: edwin.salazar@wifitelecom.ec
Organization: Wifitelecom
Name: Edmundo Cázarez
Email: edmundo.cazarez@nic.mx
Organization: NIC.MX

Summary

This proposal modifies the mechanism for updating IPv4 resource records in case of mergers, acquisitions, reorganization
s and relocations.

This proposal modifies the mechanism for updating IPv4 resource records in case of company mergers, acquisitions, reorga
nizations and relocations.

Rationale

The merger, acquisition, reorganization or relocation of companies or parts of companies is a common occurrence in the I
nternet and technology sector, among operators and other businesses.
This is also true for other types of organizations and sectors, all of them end-users of the RIRs.
The text of the existing policy is vague in its description of these activities and only considers mergers and acquisiti
ons, without specifying whether it applies to complete or partial mergers or acquisitions.
This proposal seeks to simplify the text and clarify that all cases are valid. It also proposes leaving the supporting d
ocumentation up to the staff, as such documentation will not necessarily be the same in every case.
Likewise, the proposal clarifies that mergers, acquisitions, reorganizations and relocations may be either within the LA
CNIC service region or between different service regions (intra- and inter-RIR changes).

The merger, acquisition, reorganization or relocation of companies or parts of companies is a common occurrence in the I
nternet and technology sector, among both operators and other businesses.
This is also true for other types of organizations and sectors, all of them end-users of the RIRs.
The text of the existing policy is vague in its description of these activities and only considers mergers and acquisiti
ons, without specifying whether it applies to complete or partial mergers or acquisitions.
This proposal seeks to simplify the text and clarify that all cases are valid. It also proposes leaving the supporting d
ocumentation up to the staff, as such documentation will not necessarily be the same in every case.

Text

Current text
2.3.2.17. Mergers, Acquisitions or Sales of ISPs or End Users
LACNIC's policies do not recognize the non-authorized sale or transfer of IPv4 address space and therefore such transfer
s shall be considered invalid, with the exception of those subject to the provisions of section 2.3.2.18, such transfers
shall be considered invalid.
Should an ISP or end user change ownership due to a merger, sale, or acquisition, the new entity shall register these ch
anges with LACNIC. If the name of the company is modified, legal documentation validating this change of name shall be s
ubmitted.
The information that may be requested includes, but is not limited to, the following:
• A copy of the legal document validating the transfer of assets.
• A detailed inventory of all assets used by the applicant for maintaining the IPv4 address space in use.
• A list of the applicant's clients that use portions of the allocated space.
----
New text:
2.3.2.17. Mergers, Acquisitions, Reorganizations or Relocations
LACNIC will process and register any transfer of IPv4 resources that occurs as a result of a partial or complete, intra-
or inter-RIR merger, acquisition, business reorganization or relocation, regardless of whether the resources are held by
ISPs or end-users.
To initiate this change and proceed with the registration, legal documentation supporting the operation shall be provide
d. Such supporting legal documentation will be decided by LACNIC and/or the other RIRs, if applicable.

Current text
2.3.2.17. Mergers, Acquisitions or Sales of ISPs or End Users
LACNIC's policies do not recognize the non-authorized sale or transfer of IPv4 address space and therefore such transfer
s shall be considered invalid, with the exception of those subject to the provisions of section 2.3.2.18, such transfers
shall be considered invalid.
Should an ISP or end user change ownership due to a merger, sale, or acquisition, the new entity shall register these ch
anges with LACNIC. If the name of the company is modified, legal documentation validating this change of name shall be s
ubmitted.
The information that may be requested includes, but is not limited to, the following:
• A copy of the legal document validating the transfer of assets.
• A detailed inventory of all assets used by the applicant for maintaining the IPv4 address space in use.
• A list of the applicant's clients that use portions of the allocated space.
---
New text
2.3.2.17. Mergers, Acquisitions, Reorganizations or Relocations
Because LACNIC's policies do not recognize the non-authorized sale or transfer of assigned or allocated resources, such
transfers will be considered invalid, with the exception of those subject to the provisions of section 2.3.2.18.
Nevertheless, LACNIC will process and register any IPv4 resource transfer that occurs as a result of a partial or comple
te merger, acquisition, business reorganization or relocation, regardless of whether the resources are held by an ISP or
an end-user.
To initiate this change and proceed with the registration, legal documentation must be submitted which, at the discretio
n of LACNIC, supports the operation. Examples of such documentation include:
• A copy of the legal document validating the transfer of assets.
• A detailed inventory of all the assets used by the applicant for maintaining the resources in use.
• A list of the applicant's clients using the resources.
In addition, the need to maintain all the resources must also be justified, forcing the return of the surplus resources
if applicable or, alternatively, the transfer of such surplus resources to third parties under the policies in force (2.
3.3 and 2.3.4.). When resources are to be returned, LACNIC will determine the corresponding conditions and deadline.

Additional Information

.

In extreme cases, the non-existence of this policy might result in this issue being taken to the courts if LACNIC refuse
s to update the registry for any type of resources, and, based on the legislation currently in force in Uruguay, the cou
rts might force LACNIC to modify the registry
. We believe that having this policy would avoid this situation and allows
maintaining control according to the wishes of the community. It would also avoid legal costs to both parties involved.

References

Similar policies with varying levels of “openness” exist in other service regions such as ARIN and RIPE.
In addition, an equivalent policy proposal has been submitted in APNIC and another proposal is being prepared for AfriNI
C.
• https://www.ripe.net/publications/docs/ripe-682
• https://www.arin.net/policy/nrpm.html#eight2

Similar policies with varying levels of “openness” exist in other service regions such as ARIN and RIPE.
In addition, an equivalent policy proposal has been submitted in APNIC and another proposal is being prepared for AfriNI
C.
• https://www.ripe.net/publications/docs/ripe-682
• https://www.arin.net/policy/nrpm.html#eight2