Can you sign an agreement indemnifying us against security problems in PuTTY?

PuTTY

A.9.9 Can you sign an agreement indemnifying us against security problems in PuTTY?

No!

A vendor of physical security products (e.g. locks) might plausibly be willing to accept financial liability for a product that failed to perform as advertised and resulted in damage (e.g. valuables being stolen). The reason they can afford to do this is because they sell a lot of units, and only a small proportion of them will fail; so they can meet their financial liability out of the income from all the rest of their sales, and still have enough left over to make a profit. Financial liability is intrinsically linked to selling your product for money.

There are two reasons why PuTTY is not analogous to a physical lock in this context. One is that software products don't exhibit random variation: if PuTTY has a security hole (which does happen, although we do our utmost to prevent it and to respond quickly when it does), every copy of PuTTY will have the same hole, so it's likely to affect all the users at the same time. So even if our users were all paying us to use PuTTY, we wouldn't be able to simultaneously pay every affected user compensation in excess of the amount they had paid us in the first place. It just wouldn't work.

The second, much more important, reason is that PuTTY users don't pay us. The PuTTY team does not have an income; it's a volunteer effort composed of people spending their spare time to try to write useful software. We aren't even a company or any kind of legally recognised organisation. We're just a bunch of people who happen to do some stuff in our spare time.

Therefore, to ask us to assume financial liability is to ask us to assume a risk of having to pay it out of our own personal pockets: out of the same budget from which we buy food and clothes and pay our rent. That's more than we're willing to give. We're already giving a lot of our spare time to developing software for free; if we had to pay our own money to do it as well, we'd start to wonder why we were bothering.

Free software fundamentally does not work on the basis of financial guarantees. Your guarantee of the software functioning correctly is simply that you have the source code and can check it before you use it. If you want to be sure there aren't any security holes, do a security audit of the PuTTY code, or hire a security engineer if you don't have the necessary skills yourself: instead of trying to ensure you can get compensation in the event of a disaster, try to ensure there isn't a disaster in the first place.

If you really want financial security, see if you can find a security engineer who will take financial responsibility for the correctness of their review. (This might be less likely to suffer from the everything-failing-at-once problem mentioned above, because such an engineer would probably be reviewing a lot of different products which would tend to fail independently.) Failing that, see if you can persuade an insurance company to insure you against security incidents, and if the insurer demands it as a condition then get our code reviewed by a security engineer they're happy with.