Open Source Software Licensing

The Problem Every Indie Developer Faces

Picture this: You've just finished building an amazing desktop application or WordPress plugin. It's polished, tested, and ready to generate revenue. But then reality hits - how do you actually sell and license it professionally?

Your options are:

Commercial platforms like FastSpring or Paddle ($100+/month + 5-8% fees)
Build your own (months of development time)
Use basic PayPal buttons (no license management, looks unprofessional)

None of these felt right to me. So I built Source License - a complete, open-source licensing platform that gives you enterprise features without enterprise costs.

🚧 Heads up: Source License is currently in alpha. Core features work great, but expect some rough edges as we polish everything. Perfect if you want to contribute to shaping the future of open-source licensing!

What Source License Actually Does

Complete Business Solution

Source License isn't just a license generator - it's a full business platform:

E-commerce storefront with shopping cart and checkout
Payment processing via Stripe and PayPal (with webhooks)
Customer accounts and order management
License generation with cryptographic security
Admin dashboard for everything
REST APIs for your software to validate licenses

Real License Validation API

Here's how your software validates a license (popular language SDKs are in the pipeline!):

// Simple license validation
const validateLicense = async (licenseKey) => {
  const response = await fetch(`https://yourdomain.com/api/license/${licenseKey}/validate`);
  const data = await response.json();

  if (data.valid && data.status === 'active') {
    console.log(`License valid for ${data.product}`);
    console.log(`Activations: ${data.activations_used}/${data.max_activations}`);
    return true;
  }
  return false;
};

The API returns rich data:

{
  "valid": true,
  "status": "active",
  "product": "My Amazing Software",
  "expires_at": "2025-12-31T23:59:59Z",
  "activations_used": 1,
  "max_activations": 3,
  "license_type": "perpetual"
}

Machine Fingerprinting & Activation Limits

Prevent license sharing with machine-based activation:

# Activate license on specific machine
curl -X POST https://yourdomain.com/api/license/XXXX-XXXX-XXXX-XXXX/activate \
  -H "Content-Type: application/json" \
  -d '{"machine_fingerprint": "unique_machine_id_here"}'

This lets you offer licenses like "Install on up to 3 computers" with actual enforcement.

The Tech Stack Choice: Ruby + Sinatra

Why Ruby/Sinatra Instead of Rails?

Speed: Got the MVP running in weeks, not months

Simplicity: Single file deployment, minimal dependencies
Performance: Sinatra is lightweight and fast

Maintainability: Clean, readable code that's easy to modify

Architecture That Makes Sense

lib/
├── models.rb              # Database models (User, Product, License, etc.)
├── license_generator.rb   # Crypto-secure license creation
├── payment_processor.rb   # Stripe/PayPal integration  
└── controllers/           # Modular route handlers
    ├── public_controller.rb   # Customer-facing pages
    ├── admin_controller.rb    # Admin dashboard
    └── api_controller.rb      # REST API endpoints

Database Models:

Product - Your software products with pricing
User - Customer accounts
Order - Purchase tracking
License - The actual licenses with activation data
Subscription - Recurring billing management

Security Built-In

JWT Authentication for API access
CSRF Protection on all forms
Rate Limiting to prevent API abuse
SQL Injection Prevention via Sequel ORM
Audit Logging tracks all license operations
Cryptographically Secure license generation

Getting Started (It's Surprisingly Easy)

The cross-platform setup scripts handle everything:

# Clone and enter directory
git clone https://github.com/PixelRidge-Softworks/Source-License.git
cd Source-License

# Install everything automatically
./install.sh    # Linux/macOS
# or 
.\install.ps1   # Windows

# Deploy and start server
./deploy.sh     # Linux/macOS  
# or
.\deploy.ps1    # Windows

The installer handles:

✅ Ruby version verification
✅ Gem installation via Bundler
✅ Database setup and migrations
✅ Configuration file creation
✅ Server startup

Visit http://localhost:4567 and you're running!

Configuration: Just Edit .env

# Payment Processing
STRIPE_PUBLISHABLE_KEY=pk_test_your_stripe_key
STRIPE_SECRET_KEY=sk_test_your_stripe_secret
PAYPAL_CLIENT_ID=your_paypal_client_id

# Database (supports MySQL, PostgreSQL, SQLite)
DATABASE_ADAPTER=mysql
DATABASE_HOST=localhost  
DATABASE_NAME=source_license

# Email for license delivery
SMTP_HOST=smtp.gmail.com
SMTP_USERNAME=your_email@gmail.com

# Security
JWT_SECRET=your_jwt_secret_change_this
APP_SECRET=your_app_secret_change_this

Real-World Integration Examples

(Popular language SDKs are on the way too!)

Desktop App (C#)

public class LicenseValidator
{
    private readonly string _apiBase = "https://yourdomain.com/api";

    public async Task<bool> ValidateLicenseAsync(string licenseKey)
    {
        using var client = new HttpClient();
        var response = await client.GetAsync($"{_apiBase}/license/{licenseKey}/validate");

        if (response.IsSuccessStatusCode)
        {
            var json = await response.Content.ReadAsStringAsync();
            var result = JsonSerializer.Deserialize<LicenseResponse>(json);
            return result.Valid && result.Status == "active";
        }

        return false;
    }
}

WordPress Plugin (PHP)

function validate_license($license_key) {
    $response = wp_remote_get("https://yourdomain.com/api/license/{$license_key}/validate");

    if (!is_wp_error($response)) {
        $body = json_decode(wp_remote_retrieve_body($response), true);
        return $body['valid'] && $body['status'] === 'active';
    }

    return false;
}

Python CLI Tool

import requests

class LicenseManager:
    def __init__(self, api_base):
        self.api_base = api_base

    def validate_license(self, license_key):
        try:
            response = requests.get(f'{self.api_base}/license/{license_key}/validate')
            data = response.json()
            return data.get('valid', False) and data.get('status') == 'active'
        except:
            return False

The Economics Make Perfect Sense

Let's break down the costs:

Commercial Licensing Platforms:

Monthly fees: ~$100-300+
Transaction fees: ~5-8% per sale
Setup/customization: Often $500+

Source License (Self-hosted):

VPS hosting: ~$20/month
Payment processing: 2.9% (just Stripe/PayPal fees)
Setup cost: $0 (open source)

Break-even calculation: If you're doing $500+/month in sales, you'll save money immediately. At $2000/month revenue, you could save $2000+ annually.

Use Cases I See

Desktop Applications: Perfect for Windows/Mac software

WordPress Plugins: Manage pro versions, subscriptions, and updates

IDE Extensions: VS Code, IntelliJ plugins with trial periods

Creative Tools: Photoshop plugins, video editing extensions

Educational Software: Student licenses, bulk institutional deployments

SaaS Desktop Components: License your web application

What's Coming in Future Releases

The roadmap is driven by community feedback:

📊 Advanced Analytics: Revenue tracking, customer insights, churn analysis
🌍 Internationalization: Multi-language support for global markets
📱 Mobile Admin Interface: Manage licenses from your phone
🔌 Plugin Architecture: Extend functionality with custom modules
🚀 Performance Optimizations: Redis caching, CDN support
💳 More Payment Gateways: Cryptocurrency, regional providers

Join the Alpha Testing Community

Since we're in alpha, your feedback shapes the product:

How to contribute:

🐛 Report bugs via GitHub Issues
💡 Request features in Discussions
🔧 Submit pull requests (we have contribution guidelines)
📖 Improve documentation (always needed!)
🧪 Test in real projects and share your experience

GitHub: https://github.com/PixelRidge-Softworks/Source-License

Community: Active discussions for support and feature planning

Why Open Source Licensing Platforms Matter

The software licensing space has been dominated by expensive SaaS platforms for too long. By building Source License as GPL v2.0:

No vendor lock-in: You own your licensing infrastructure
Community-driven: Features built by developers, for developers
Transparent: Every line of code is auditable
Cost-effective: Perfect for indie developers and small teams

Ready to Take Control of Your Software Licensing?

If you're tired of paying high fees to licensing platforms, or if you're launching a new software product and want professional licensing from day one, Source License might be exactly what you need.

Get started:

Star the repo: https://github.com/PixelRidge-Softworks/Source-License
Clone and try the alpha version
Join our community discussions
Share your feedback and use cases

Questions? Let's Discuss! 💬

What licensing challenges are you facing with your software products? Have you tried building your own solution, or are you currently using a commercial platform?

Drop your questions and experiences in the Github Discussions (I am not on HashNode commonly, comments may go unanswered!) - I'd love to help you evaluate if Source License fits your needs (and get your input on what features to prioritize)!

Follow me on Github for more open source development, Ruby, and building developer tools! 🚀

Why I Built an Open-Source Software Licensing Platform (And You Should Use It)