"A paper recently written by two university professors offers a
business model that would keep the software open and free, while
allowing its developers to profit. The model would have open source
software companies make money through royalty fees and sales of
their newest innovations, then offer the complete software and
source code for free after a predetermined period.
"The paper, 'Innovation Through Optimal Licensing in Free
Markets and Free Software,' was written by Marshall Van Alstyne, a
doctoral student at the Massachusetts Institute of Technology's
Sloan School of Management, and Dr. Geoffrey Parker, an associate
professor of information and operations management at Tulane
University in New Orleans..."