Ransomware

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In 1998 Erik Seaberg introduced the notion of Ransomware[1] (sometimes called hostageware) as an alternative to releasing software as free/open source software from the beginning. The idea is that developers can make more money with this approach than would often be otherwise possible by releasing software which can be freely copied by its users. He defined Ransomware as a business model in which a developer first sells software as proprietary software in the form of a binary only. Money would come from a number of contributors, then when the gross income on it reaches the developer's ransom amount, the source code for it is then released at no cost as free/open source software.

Ransomware can take a number of forms:

  1. Software which is initially released as proprietary software, requiring licensing, which becomes open source once a certain amount of money is collected by the copyright-holder. (Blender is an example of software which was ransomware in this sense.)
  2. Software plugins which are created and held by the developer prior to the ransom being paid, at which time the plugin is released with no further licensing requirements. (Some plugins for the Textpattern CMS are released in this fashion.)

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