Ransom Software for Fun and Profit

Users have three main goals in mind when considering software: support, freedom, and quality. Users may not directly recognize these attributes, but they are relevant to every software decision. In this paper, I'll cover these three objectives and explain why releasing software under a ransom system may be a good alternative for some software projects.

Goals of Software

Support

The first concern of users is support. Support is typically needed not only because of problems with the software itself, but also because of problems with user understanding. In today's market, the illusion of support is more typical than real satisfactory support. Users will often make a purchase decision based on this illusion because it provides comfort similar to an insurance policy. They believe support will be there if they should ever need it.

Freedom

Users want the freedom to use software to suit their needs. The recent upsurge of Open Source software has demonstrated this need. Users usually refer to "buying" software when, in fact, they are leasing software. Many software companies impose many restrictions on the use and distribution of the provided software. Although personal users typically violate these agreements without penalty, companies are forced to play by the rules. It's important to note that better freedom will also provide better support. Anyone with access to the source can support and fix the software. Without such access, it would be difficult at best to provide any support to existing customers.

Quality

Last, but not least, we want to consider quality. What point would there be in support and freedom if the software didn't perform the way we wanted? There are a few different perspectives on quality. The developer has one point of view, the business another, and the end user still another. The users' is the most relevant standpoint, simply because of their numbers. Bad quality can usually be corrected with good feedback from the end user.

Enter the Ransom System

Up to now, we've covered some of the "mile high" views of software development. Next, we'll discuss the real purpose of this paper: The ransom system.

Overview

The Ransom license was originally created by Theoretic Solutions, a public think tank which works for the betterment of technology, business, and politics. In order to properly understand the ransom system, it's helpful (at least for this author) to think of all software as information, rather than as tangible products. Once you consider software in this light, the meaning of product purchases becomes different. Here are some important points to consider about the sale of information:

The sale of information does not include charges for raw materials, and therefore is difficult to quantify. You can't justify pricing with the costs of raw materials such as timber, oil, or silicon. It relies directly on how much the buyer is willing to buy for and how much the seller is willing to sell for.
Information is easily transferable. The more parties that have access to information, the more likely it is to spread and lose value. It is therefore of greater interest to sell at a higher price to fewer parties rather than at a low price over a long term.
Any attempts on restriction of distribution and use will fail in the end due to unrealistic costs of enforcement.

The ransom system aims to alleviate some of the problems with current software release systems. Typically, software is either sold on a per customer basis, with highly restricted use and distribution terms, or given away freely to the public. The first treats the customer unfairly and the second treats the developer unfairly (in most situations). The ransom system allows developers to release Open Source software, but get compensated for it at the same time.

Ransom Properties

Ransom Releases have the following properties:

A total ransom amount to compensate for all development.
Once this amount has been paid to the developer, the software is released to the public under an OSI/FSF compliant license.
Smaller payment amounts.
These may be accepted in exchange for limited use copies of the software. These payment amounts accumulate and go towards the payment of the total ransom amount.
A dissolve date.
This guarantees the release of the software by a specific date, regardless of payment.

Support

Because the ransom typically only covers development, services can be sold to support the project. This cuts initial costs and keeps the users paying for only what they need.
If the developer drops the project, it can be picked up by other interested parties.
Because the developer is compensated, he/she is more inclined to offer support and documentation for the project.
The final release to the public allows anyone to offer support.

Freedom

Users are not charged for the number of copies, users, processors, or data transfers. This creates a fair market in which customers are not charged for the size of their company or any other irrelevant factor. (The size of a company imposes no additional costs to the developer.)
The final license is Open Source, offering much more freedom than typical commercial software.

Quality

Users are more likely to provide feedback on Open software that they've paid for.
Developers are more inclined to provide quality and listen to feedback when they are being compensated for time spent on a project.
If the developer offers discounted or free access to code contributors, companies may be able to recoup any additional development costs made to the software.

The Technology Ransom Network

The Technology Ransom Network has been set up at http://ransom.tekrat.com/ to assist developers with the use of a ransom model.

The ransom is handled by Tekrat Labs, not the developer, to help ensure fairness.
Accounts are free to set up; the only costs are credit card transaction fees taken out of payments
PayPal is used, so it's easy and free to set up.
Account creation, payment, and access to the project are handled; developers just upload releases as they become available.

The Technology Ransom Network makes it easy to release quality software. Developers who want to try a new releases system can easily take it for a test drive by creating a new account and placing a single version up for ransom. If they like how the system works, they can ransom another version. If not, they simply continue to release the software as usual.

Conclusion

The ransom system shares many common roots with today's Open Source development, but tries to enhance it. Ransom software creates a fair and stable environment for developers to work. It also keeps the users in mind by not restricting their use or requiring unfair compensation. It's hoped that this can directly or indirectly bring about positive action in the software development community.