LACNIC

The Latin American and Caribbean Region

LACNIC IPv4 Transfer Process

IPTrading wrote the Latin American and Caribbean transfer policy that opened the IPv4 market in South America. The policy allows for transfers to LACNIC, ARIN, APNIC, or RIPE members, as well as transfers due to mergers or acquisitions. For all transfers, the LACNIC members must demonstrate a justified need for the addresses. If the recipient is out of region, the recipient’s RIR performs the needs test according to that RIR’s policy. Historically there have been few transfers in the this region, but the implementation of interregional transfers in June of 2020 has increased the number of transfers involving the address space.

Cool Timeline

2020
Buyer creates a MyLACNIC Account

A Buyer wishing to receive LACNIC IPv4 space should set up a MyLACNIC account through LACNIC’s website.

Buyer applies for LACNIC pre-approval

Buyers need to demonstrate to LACNIC that they have a justifiable need for IPv4 space before receiving it (even though they are willing to pay for it).

Buyer and Seller negotiate sale under guidance of Broker

Under the guidance of the Broker, Buyer and Seller negotiate the price and terms of the IPv4 sale. In most cases, Buyer and Seller will execute an Asset Purchase Agreement codifying these terms. The Asset Purchase Agreement is a legally binding document that specifies when the Buyer is to fund escrow, and to which escrow agent, when the Seller is to initiate the transfer, and when the funds are to be released from escrow to the Seller. LACNIC is not involved in this step although they are aware that money often changes hands when IPv4 space is transferred.

Seller initiates a transfer request with LACNIC

The Seller enters a transfer request in their MyLACNIC portal to transfer IPv4 space to the Buyer. This creates a LACNIC ticket number. LACNIC will invoice the Seller for a $200 nonrefundable deposit.

LACNIC notifies Buyer of pending transfer request

LACNIC notifies the Buyer through their MyLACNIC portal that there is a pending request to transfer IPv4 space to their organization. LACNIC asks the Buyer to confirm it wishes to receive the IPv4 space.

Seller provides LACNIC any requested information

A LACNIC analyst will communicate with the Seller and may request additional information such as company registration documents.

Buyer provides LACNIC any requested information

A LACNIC analyst will communicate with the Buyer and may request additional information such as company registration documents. If the Buyer has not completed the LACNIC preapproval process, LACNIC will ask them to justify their need for the IPv4 space.

LACNIC approves the transfer

After LACNIC completes its diligence with both Buyer and Seller, LACNIC notifies both parties that the transfer is approved, pending payment of its transfer fee invoice and execution of its transfer agreement.

LACNIC invoices Buyer for Transfer Fee

LACNIC invoices the Buyer for the transfer fee ($1,000 – $1,500 depending on block size). The $200 deposit made by Seller at the start of the process is applied to this fee.

Buyer and Seller sign LACINC Resource Transfer Agreement

LACNIC emails a Resource Transfer Agreement. Hard copy versions of this must be signed by both Buyer and Seller and mailed back to LACNIC.

LACNIC completes the transfer

LACNIC finalizes the transfer and updates Whois, thus completing the transfer process.

LACNIC IP Transfer FAQ’s

How long does a LACNIC IPv4 transfer take?

LACNIC does not guarantee a fixed completion time for IPv4 transfers. In practice, buyers and sellers should plan for several weeks, and LACNIC transfers can take one to two months when the needs review or documentation takes additional time. The process includes verification of the parties, review of the recipient’s IPv4 justification, payment of the applicable fee, and execution of the required transfer documents before the registry is updated.

What does a buyer need to show to qualify for a LACNIC IPv4 transfer?

An organization receiving IPv4 addresses in the LACNIC region must justify its need for the requested space before the transfer can be approved. LACNIC applies its current IPv4 allocation or assignment criteria to that review. Under the current rules, applicants generally need to demonstrate immediate use or need for at least 25% of the requested addresses and provide a plan showing at least 50% utilization within 12 months. The minimum block that can be transferred is a /24.

What documentation is required for a LACNIC IPv4 transfer?

LACNIC may ask the transferring organization for documents showing that the person submitting the request is authorized to act on behalf of the registered resource holder. Once the request is approved, the organizations must sign LACNIC’s transfer agreement and joint transfer instructions. A recipient that has not previously received resources from LACNIC, or that holds legacy resources, may also need to sign a LACNIC service agreement. LACNIC can request additional corporate or supporting documentation when it needs to verify the parties or the transaction.

How much does LACNIC charge for an IPv4 transfer?

For an intra-regional IPv4 transfer, LACNIC currently charges an administrative fee of $1,000 for blocks from /24 through blocks smaller than /19, and $1,500 for a /19 or larger. The recipient pays an initial $200 when the transfer request is started. If the request is denied because the recipient cannot justify the addresses, that payment is not refunded. If the transfer is approved, the recipient pays the remaining balance of the applicable fee. Membership or category-related charges can also apply separately.

How long must LACNIC IPv4 addresses be held before they can be transferred again?

IPv4 addresses that have been transferred under LACNIC policy generally cannot be transferred again, either in full or in part, for one year from the date recorded in LACNIC’s transfer log. There is also a separate rule for IPv4 addresses originally allocated or assigned directly by LACNIC. Those resources cannot be transferred for three years from their original allocation or assignment date. In addition, an organization that transfers IPv4 space becomes ineligible to receive new IPv4 allocations or assignments from LACNIC for one year.

Can a LACNIC buyer qualify for IPv4 space before finding a seller?

Yes. LACNIC recommends that prospective recipients apply to its List of Possible IPv4 Transfers as a receiving organization. This allows LACNIC to review whether the organization meets the requirements and can justify the IPv4 space before a specific transfer is underway. Completing that review in advance can reduce uncertainty once a suitable block and seller have been identified. LACNIC’s transfer listing service currently carries a $200 administrative fee and listings remain active for one year.

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