Posted October 03, 2012
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It's hard to make any form of contractual obligations in regards to this.. because projects do, from time to time, fail. If we change KS to the point where basically, if there is any chance your project could fail, then you shouldn't even do a KS because you'll get your pants sued off.. it will, in turn, eliminate the very thing KS was created for: Indies who cannot get traditional backing.
KS's nature is a double edged sword.
On one hand, it allows the legitimate projects in the hands of small-time groups to actually get the funding they need to create an awesome product. Like some of these:
http://www.kickstarter.com/projects/257331192/tephra-the-steampunk-rpg
http://www.kickstarter.com/projects/1660163976/the-dragons-storm-trilogy
http://www.kickstarter.com/projects/2067825909/attacks-of-opportunity
http://www.kickstarter.com/projects/1726132015/aleph-remember-what-made-games-great
All of those are from 'nobodies' with little to no industry experience. Of those only Aleph isn't finished, and Jesse has been working heavily on that and his other video game project.
However, on the other hand, yes.. KS's nature does open it up to scammers and con artists. It can easily be the modern form of selling someone the Eiffel Tower for scrap metal. Weave a believable story and people will buy it.
What needs to be found, is means to protect against the con artists but does not create a system where the creator basically has their life ruined if the project fails.
Currently KS can work because.. as has been pointed out, most backers are using expendable money on it, usually between $10 and $100- if their 'investment' doesn't pan out, they're not really out much- and most of us are willing to accept that risk.
Too many more projects that are either scams, or amateurs that have a cool idea but no clue what they're doing.. and all the true indie KS will be completely buried by the big names jumping on the crowdfunding bandwagon.