IP Address Assets

@
@ Good question! Would the bankrupt court consider the address space as a
@ sellable asset?
@

I believe that you will find the answer to be yes...

Companies in the U.S. should probably consult with their
CPAs and attorneys on how the IRS handles assets such
as IP addresses.

This is especially important if an asset is required without
any payment being made. If a /8 is worth $1,000,000 and
some company is arbitrarily given one of these to help
their "start-up" get venture capital, then that asset is a
key to obtaining the funding and is part of the capitalization
of the company.

The organization "giving" the "start-up" that block, could
be viewed as an "equity" partner or stockholder in the
start-up. If the start-up raised $4,000,000 and added the
block to their Balance Sheet then that asset would be
20% of the company. That can be a significant ownership
interest in a start-up, subject to the 5% limits.

Again...I suggest that companies make sure they understand
the value of their IP assets and how to account for that value.

@
@ Good question! Would the bankrupt court consider the address space as a
@ sellable asset?
@

I believe that you will find the answer to be yes...

I believe... yes, I believe... Through it was not joke but serious
question; and I hope you get serious answer...

Please, pay attention to the fact - IP numbers are not selled, they cost
nothing; but they are important part of the assets ISP does have... DO
you think it'll be forever - the thing _cost nothing_ but _is limited_
and _is important_...?

No matter if _there exist big nabobs_ or _not_... Everything is relative
- there is one set of _big nabobs_ there i Russia; there is another set
in Europe, and 3'th set in USA (and some _USA's nabobs_ have not any real
weight in Russia, for example_). But the truths is _we would not see a
lot of existing ISP in a few next years_ (in USA, in Russia, in Europe -
I am not market man and don't like to predict future). And I dislike to
have a lot of flame in the mail lists, a lot of wasted address space in
IP numbers, and a lot of routing problems when this small ISP would be
joined, merged, splitted etc...

I do not know if InterNIC's people think about this, or they allow
everything to flow as it's flowing itself. But the time of academic's
Internet is over, and new players are appeared on the playboard...
De facto European ISP buy address space, because they pay for the IP
registry; and this helps to keep address space. You can blame to those
who sells class-B networks; but if they would not sell them, nobody use
this address space at all (nobody cause them to free this space)...

It's important to go between scilla and charibda (sorry, I am not sure
about spelling this names in English); I have when american's NIC began
to ask money for the top level domains, but can't get this money by any
acceptable ways (and a lot of people over the world send faxes, try to
call them by phone etc because they have not enougph phones and peoples
to do their work); I am afraid if class-B network would cost 60,000$
(it's not too great for the _big nabobs_ or for the old ISP but it's
serious barrier for the small ISP in the small countries - let's imagine
some ISP in the Georgia, for example, or some scientific institute in
Armenia)...

Cleanly it's not good place _nanog_ to discuss there, but I don't see
another one while...

Companies in the U.S. should probably consult with their
CPAs and attorneys on how the IRS handles assets such
as IP addresses.

This is especially important if an asset is required without
any payment being made. If a /8 is worth $1,000,000 and
some company is arbitrarily given one of these to help
their "start-up" get venture capital, then that asset is a
key to obtaining the funding and is part of the capitalization
of the company.

The organization "giving" the "start-up" that block, could
be viewed as an "equity" partner or stockholder in the
start-up. If the start-up raised $4,000,000 and added the
block to their Balance Sheet then that asset would be
20% of the company. That can be a significant ownership
interest in a start-up, subject to the 5% limits.

Again...I suggest that companies make sure they understand
the value of their IP assets and how to account for that value.

--
Jim Fleming
Unir Corporation

e-mail:
JimFleming@unety.net
JimFleming@unety.s0.g0 (EDNS/IPv8)

Aleksei Roudnev, Network Operations Center, Relcom, Moscow
(+7 095) 194-19-95 (Network Operations Center Hot Line),(+7 095) 239-10-10, N 13729 (pager)
(+7 095) 196-72-12 (Support), (+7 095) 194-33-28 (Fax)

It's important to go between scilla and charibda (sorry, I am not sure
about spelling this names in English)

Scylla and Charybdis -- It comes from the Illiad or the Odyssey by Homer
and a more common English term is "between a rock and a hard place".

Scylla was a beautiful maiden that Circe turned into a horrendous monster.
This monster used to devour seamen including 6 of Ulysses companions until
she was turned into a rock. Charybdis was another monster that lived in a
whirlpool near this rock. It was a treacherous place and took great skill
to steer a boat between Scylla and Charybdis but Ulysses did succeed in
doing so.

(it's not too great for the _big nabobs_ or for the old ISP but it's
serious barrier for the small ISP in the small countries - let's imagine
some ISP in the Georgia, for example, or some scientific institute in
Armenia)...

Anyone in ex-SU will get IP address space from RIPE NCC
http://www.ripe.net or possibly from APNIC http://www.apnic.net if they
are in Asia. I'm not sure where the boundary for the two NIC's runs but
you can check their web pages or send them email. But everyone should
check the list of documents in the Recommended Reading section at
http://www.arin.net because they apply everywhere in the world.

Michael Dillon - Internet & ISP Consulting
Memra Software Inc. - Fax: +1-250-546-3049
http://www.memra.com - E-mail: michael@memra.com