Your understanding is incorrect. ARIN operates the registry in accordance with the policy developed by ARIN region, and resources in the registry are therefore completely subject to those policies. As I noted earlier, we'd prefer contracts where possible, but even a party that does not have a formal contract can chose to participate or not. You can use any numbers you want in your routers, but if you wish to use numbers which are unique per the Internet Registry system, then you are participating in the Internet Registry system, gaining the benefits thereof, and therefore are subject to the policies used in its coordination & operation. Like I said, "fuss and bluster." This is an assertion of authority with nothing to back it up.