A Proposed Business Arrangement... I wish to have your opinion regarding the following business transaction under the Islamic Law: Assume that two persons jointly develop a computer software. One of them work as the content writer while the other becomes the programmer. Both persons live and work in different locations and only communicate through the internet. They never meet face-to-face. It is agreed that the content writer and programmer will share the income from the sale under a predetermined ratio. The content writer will act as the seller. When a buyer purchases the software, a unique password will be given to the buyer to unlock the software. The programmer will act as the password issuer, and will pass the password to the content writer (so that he can give it to the buyer) once the content writer passes to the programmer his share of the sale. Is this type of business transaction permissible in Islam? Assume that the software is sold at $20. The writer and programmer agreed to receive $10 each without deducting cost. This means each person will receive 50% of gross revenue. If no sale is made, both will not receive anything. Is this permissible? Or must they only share on the basis of profit (or loss)? (Note: If they use gross revenue as the basis of sharing, there is a possibility that sometime, only one of them experience a profit or loss. However this can be overcome by increasing the price.) Must the writer and programmer share the income on an equal basis (50:50)? If both party accept sharing on unequal basis (such as 70:30 or 80:20), is this permissible? Malaysia Reply Answers to your questions follow: The above arrangement entails nothing, which could be termed as prohibited in Islam. If revenues, rather than profits, are to be shared, then the arrangement should also entail a clear understanding of how the costs shall be shared/distributed. In the absence of such an explicit understanding, it is quite likely that the arrangement become a victim of conflicts and misunderstandings. It is not necessary that all partners share the profits on equal basis. Any arrangement mutually agreed upon by the parties to the contract may be made. I hope this helps. Regards, The Learner