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The threshold pledge or fund and release system is a way of making a fundraising pledge as a group of individuals, often involving charitable goals or financing the provision of a public good. An amount of money is set as the goal or threshold to reach for the specified purpose and interested individuals will pitch in, but the money at first either remains with the pledgers or is held in escrow.
When the threshold is reached, the pledges are called in (or transferred from the escrow fund) and a contract is formed so that the collective good is supplied; a variant is that the money is collected when the good is actually delivered. If the threshold is not reached by a certain date (or perhaps if no contract is ever signed, etc.), the pledges are either never collected or, if held in escrow, are simply returned to the pledgers. In economics, this type of model is known as an assurance contract.
This system is most often applied to creative works, both for financing new productions and for buying out existing works; in the latter cases, it is sometimes known as ransom publishing modelor Street Performer Protocol (SPP).
Street Performer Protocol is an early description of a type of threshold pledge system. SPP is the threshold pledge system encouraging the creation of creative works in the public domain or copylefted, described by Steven Schearand separately by cryptographers John Kelsey and Bruce Schneier. This assumes that current forms of copyright and business models of the creative industries will become increasingly inefficient or unworkable in the future, because of the ease of copying and distribution of digital information.
Under the Street Performer Protocol, the artist announces that when a certain amount of money is received in escrow, the artist will release a work (book, music, software, etc.) into the public domain or under a free content license. Interested donors make their donations to a publisher, who contracts with the artist for the work's creation and keeps the donations in escrow, identified by their donors, until the work is released.
If the artist releases the work on time, the artist receives payment from the escrow fund. If not, the publisher repays the donors, possibly with interest. As detailed above, contributions may also be refunded if the threshold is not reached within a reasonable expiring date. The assessed threshold also includes a fee which compensates the publisher for costs and assumption of risks.
The publisher may act like a traditional publisher, by soliciting sample works and deciding which ones to support, or it may serve only as an escrow agent and not care about the quality of the works (like a vanity press). [ citation needed ]
In software, source code escrow is a publishing model that applies the SPP to source code (often involving existing proprietary software) which is eventually released under an open source or free software license.
The Street Performer Protocol is a natural extension of the much older idea of funding the production of written or creative works through agreements between groups of potential readers or users.[ citation needed ]
The first illustrated edition of John Milton's Paradise Lost was published under a subscription system;and Mozart and Beethoven, among other composers, used subscriptions to premiere concerts and first print editions of their works. Unlike today's meaning of subscription , this meant that a fixed number of people had to sign up and pay some amount before the concert could take place or the printing press started.
These three (piano) concertos K413-415 ... formed an important milestone in his career, being the first in the series of great concertos that he wrote for Vienna, and the first to be published in a printed edition. Initially, however, he followed the usual practice of making them available in manuscript copies. Mozart advertised for subscribers in January 1783: "These three concertos, which can be performed with full orchestra including wind instruments, or only a quattro, that is with 2 violins, 1 viola and violoncello, will be available at the beginning of April to those who have subscribed for them (beautifully copied, and supervised by the composer himself)." Six months later, Mozart complained that it was taking a long time to secure enough subscribers. This was despite the fact that he had meanwhile scored a great success on two fronts:…
However, there are a number of differences between this traditional model and the SPP. The most important difference is that traditionally, the subscribers would be among the first to get access and would do so with the understanding that the work would likely always be a "rare" good; thus, there was some status in owning a copy, as well as the prestige of being among the patrons.[ citation needed ] Additionally, subscriptions were generally sold at a set price,[ citation needed ] but some wealthy subscribers may have given more in order to be a patron. In the modern Street Performer Protocol, each funder chooses the amount they want to pay, and the work is released to the public and freely reproduced.
In 1970, Stephen Breyer argued for the importance of this model in "The Uneasy Case for Copyright".
The Street Performer Protocol was successfully used to release the source code and brand name of the Blender 3D animation program. After NaN Technologies BV went bankrupt in 2002, the copyright and trademark rights to Blender went to the newly created NaN Holding BV. The newly created Blender Foundation campaigned for donations to obtain the right to release the software as free and open source under the GNU General Public License. NaN Holding BV set the price tag at 100,000 euros. More than 1,300 users became members and donated more than 50 euros each, in addition to anonymous users, non-membership individual donations and companies. On October 13, 2002, Blender was released on the Internet as free/open source software.
Variations of the SPP include the Rational Street Performer Protocol and the Wall Street Performer Protocol.
A cypherpunk is any activist advocating widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change. Originally communicating through the Cypherpunks electronic mailing list, informal groups aimed to achieve privacy and security through proactive use of cryptography. Cypherpunks have been engaged in an active movement since the late 1980s.
The Jakarta Messaging API is a Java application programming interface (API) for message-oriented middleware. It provides generic messaging models, able to handle the producer–consumer problem, that can be used to facilitate the sending and receiving of messages between software systems. Jakarta Messaging is a part of Jakarta EE and was originally defined by a specification developed at Sun Microsystems before being guided by the Java Community Process.
In the context of information security, and especially network security, a spoofing attack is a situation in which a person or program successfully identifies as another by falsifying data, to gain an illegitimate advantage.
Software as a service is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as "on-demand software", and was formerly referred to as "software plus services" by Microsoft.
The Blender Foundation is a nonprofit organization responsible for the development of Blender, an open source 3D content-creation program.
Source code escrow is the deposit of the source code of software with a third-party escrow agent. Escrow is typically requested by a party licensing software, to ensure maintenance of the software instead of abandonment or orphaning. The software's source code is released to the licensee if the licensor files for bankruptcy or otherwise fails to maintain and update the software as promised in the software license agreement.
Various copyright alternatives in an alternative compensation systems (ACS) have been proposed as ways to allow the widespread reproduction of digital copyrighted works while still paying the authors and copyright owners of those works. This article only discusses those proposals which involve some form of government intervention. Other models, such as the street performer protocol or voluntary collective licenses, could arguably be called "alternative compensation systems" although they are very different and generally less effective at solving the free rider problem.
Commercial advantage of copyleft works differs from traditional commercial advantage of Intellectual Property Rights (IPR). The economic focus tends to be on monetizing other scarcities, complimentary goods rather than the free content itself. One way to make money with copylefted works is to sell consultancy and support for users of a copylefted work. Generally, financial profit is expected to be much lower in a "copyleft" business than in a business using proprietary works. Another way is to use the copylefted work as a commodity tool or component to provide a service or product. Android phones, for example, are based on the Linux kernel. Firms with proprietary products can make money by exclusive sales, by single and transferable ownership, and litigation rights over the work.
Companies whose business center on the development of open-source software employ a variety of business models to solve the challenge of how to make money providing software that is by definition licensed free of charge. Each of these business strategies rests on the premise that users of open-source technologies are willing to purchase additional software features under proprietary licenses, or purchase other services or elements of value that complement the open-source software that is core to the business. This additional value can be, but not limited to, enterprise-grade features and up-time guarantees to satisfy business or compliance requirements, performance and efficiency gains by features not yet available in the open source version, legal protection, or professional support/training/consulting that are typical of proprietary software applications.
Ton Roosendaal is a Dutch software developer and film producer. He is known as the original creator of the open-source 3D creation suite Blender and Traces. He is also known as the founder and chairman of the Blender Foundation, and for pioneering large scale open-content projects. In 2007, he established the Blender Institute in Amsterdam, where he works on coordinating Blender development, publishing manuals and DVD training, and organizing 3D animation and game projects.
Bountysource is a website for open source bounties and since 2012 also for crowdfunding. Users can pledge money for tasks using micropayment services that open source software developers can pick up and solve to earn the money. It also allows large-scale fundraising for big improvements on the project. It integrates with GitHub using its bug tracker to check if the problem is resolved and connect the resolution with GitHub's pull request system to identify the patch. When the users agree that they are satisfied and the project maintainer merged the proposed changes to the source-code, Bountysource will transfer the money acting as a trustee during the whole process.
Fan-funded music is a type of crowdfunding that specifically pertains to music. Often, fan-funded music occurs in conjunction with direct-to-fan marketing. Fans of music have the option to donate and collectively raise money with the goal of jump-starting the career of a given musical artist. The fan-funding of music occurs primarily through web-based services using a business model for crowdfunding. Fans are typically given rewards based on their monetary contributions.
Kickstarter is an American public benefit corporation based in Brooklyn, New York, that maintains a global crowdfunding platform focused on creativity. The company's stated mission is to "help bring creative projects to life". As of December 2019, Kickstarter has received more than $4.6 billion in pledges from 17.2 million backers to fund 445,000 projects, such as films, music, stage shows, comics, journalism, video games, technology, publishing, and food-related projects.
CrowdRise is a for-profit crowdfunding platform that raises charitable donations. CrowdRise was founded by Edward Norton, Shauna Robertson, and the founders of Moosejaw, Robert and Jeffrey Wolfe. CrowdRise was acquired in 2017 by GoFundMe.
The Danish Chamber Orchestra is a chamber orchestra in Danemark. It was the Danish National Chamber Orchestra from 1939 to 2014, when it was under the Danish Broadcasting Corporation (DR). Since 2015, it has been funded privately.
Video game development has typically been funded by large publishing companies or are alternatively paid for mostly by the developers themselves as independent titles. Other funding may come from government incentives or from private funding.
Citizinvestor was a civic crowdfunding website that describes itself as a "crowdfunding and civic engagement platform for local government projects on the United States."
Spacehive is a United Kingdom-based crowdfunding platform for projects aimed at improving local civic and community spaces.
Community Funded is a crowdfunding platform based in Fort Collins, Colorado allowing project creators to create one or more fundraising projects on the site with the goal of helping people and organizations with projects find the ideas, funding, and resources they need to be successful.
Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet. Crowdfunding is a form of crowdsourcing and alternative finance. In 2015, over US$34 billion was raised worldwide by crowdfunding.