I have not tried encoding my scripts but there is actually an open source PHP encoder.

It is called Turck MMCache

http://turck-mmcache.sourceforge.net/index_old.html#encoder

I am not for or against the use of an encoder in general.  There are specific circumstances to argue one way or the other.  Not all software will benefit from open source philosophies.  Same with closed source philosophies and software.  Somewhere there is a balance that makes things work in real life.  How far one way or the other depends on the specific situation.  Open source software can benefit from closed source software if the developers are proactive about giving back.  There are some situations where a strictly open source project will not have incentive to grow; but if it is closed source AND gives back to the community in some way, both the closed source and open source "sides" can benefit.

I am developing a 'hosted' type application based on open source software (CakePHP included).  I do not plan on making the application itself open source.  I do however plan on donating back to the CakePHP project once it is live and generating income, as well as porting general pieces of code out of the project into open source plugins/components/etc.. as it makes sense.

Since it is hosted I do not plan to use an encoder.

In certain business models closed source does make sense even if your product / service is based on open source software.  However, since you have benefited from that software, giving back to the developers and community makes sense as well. 

If you base your project on CakePHP, growth of the CakePHP framework will only help your project.

So my point would be.... you cannot condemn someone for wanting to use an encoder when taking advantage of open source software as long as the original files released as open source remain that way.  If you are a developer and plan on using an encoder, just double check that it makes sense to do so in your specific case; and make sure you contribute back to CakePHP in a way that adds value.

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