A few notes regarding intellectual property protection...

If I remember correctly, Microsoft's first Commerce Server was written in Python by a company that they acquired, and Microsoft actually shipped it as .pyc files. (I may be wrong, but that's what I remember hearing).

Whether or not to protect your code (and how to do it) depends on what you are building. If it has a large audience, especially a consumer audience, and is high-value, it's an issue. In that case, my suggestion is to look at Cython. Move the "special sauce" code into Cython modules, and compile them down to .so/.dll files.

I know of a few companies that do this, one of which has a full desktop app using Qt/PySide, and they're really happy with using a blend of Python and Cython.

If your code has a limited customer base, especially if they are not especially technical, you might be good enough just giving them the .py files and enforcing your rights legally. At a company I used to work for, a large portion of our released application was in source files, but the market was small and the users were non-technical, so there really wasn't any reason to protect it other than enforce our license agreement.

-Kris
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