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.