Craig,

I really don't want to stretch out this thread any further,
but there's an interesting little strategy here,
which is sort of semi-ethical.

First you write a non-open-source copy of your software,
and make it available from you directly with a certificate etc. etc.,
which authenticates that it came from you etc.

Then you plant large numbers of virus-laden versions of your software
in third world countries on the net for hackers to copy and distribute.
These could, say, do something nasty every 90 days.

The trick here is to create a _fake_ cracker site,
and play their game.

Then the user, hearing that there are vast numbers of
virus-ridden copies of your software washing around on the net,
will be happy to have an authenticated copy of your software --
direct from the author.

That's one very good reason why commercial concerns do not
use pirate software. Where I ahve worked, it has been a firing
offence to install pirate software, because it is too
dangerous for the company. Only companies really ahve the money
to buy software anyway. They have budgets for buying software,
whereas individuals want everything for nothing.

The virus-ridden software could be initially the same as the real software,
and then start getting calculations wrong, and mysteriously stop from
time to time -- a kind of steganographic kind of virus, namely
a virus which is not obviously a virus, but just gets things
progressively more and more wrong, or just randomly wrong
at certain random times of day. Or they could just all out 
delete all databases or something.

Now what distinguishes your software from pirate software is
the fact that the user has a secure feeling that they
are getting the software from you.

If anyone tries to sue for damages caused by the virus-ridden
software, then you can say "where is your certificate?",
and you can check the certificate for that registered individual
against some watermark (or CRC) for the binary executable.

The only question now is whether you can get sued for
distributing buggy software.
Ethically, I think you are safe.
You give away software from a third world site -- who will
know that it was you who put the virus in?
There are a lot of 3rd world countries where you could
quite cheaply hire some people to distribute such
virus-infected software. The cracker networks
use writeable "incoming" directories, don't they?
Well, just write your code in there anonymously!

Then you can say "don't risk it with imitations --
get your software securely from the source, with a certificate".

How about that?
Have I solved the problem???

Cheers,
Alan Kennington.
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