In a surprise move intended to accelerate the growth of the online security products market, Baltimore Technologies, the Dublin-based security software company, is to offer one of its key developer products for free from its website. In the past the product elements would have cost developers $10,000 to $20,000 (€11,470.5-€22,941).
The move takes advantage of the expiration this month of the patent on the algorithm, or mathematical formula, used in most commercial security products. The patent, owned by the Massachusetts Institute of Technology, has been licensed to the same company, RSA Security, for 17 years. Companies using the algorithm for products sold in the US - including Baltimore - have had to pay large licensing fees to RSA Security. Baltimore shares closed virtually unchanged at $22.75, following the announcement. The patent and RSA's enforcement of it have been controversial and critics say the company's tight control on its commercial use has hobbled the growth of the computer security industry. The patent was due to expire on September 20th but RSA suddenly announced it would release the algorithm to the public domain on Wednesday.
The most significant move is likely to be the company's decision to consolidate several of its developer offerings into two basic toolkits - one called "Lite" and one "Professional" - and to offer the "Lite" version online by September 20th for free.
