Jessica Lyon has posted on the Firestorm Viewer blog a thank you to the SL community. They have been raising funds mostly to pay for the Kakadu license.
Kakadu used to get lots of coverage in the SL blogosphere. Not so much anymore. Kakadu is the software Linden Lab and Firestorm developers license to handle compression and decompression of images.

You may not know that Linden Lab stores all images/textures in JPEG2000 format. The format offers the advantage of faster and smaller downloads and larger and slower downloads by having different resolution images efficiently stored in one image file. While the format is an ISO standard, the process of getting an image into and out of JPEG2000 format is proprietary. There are open source libraries developers can use to make and use JPEG2000 format files. They aren’t the same as Kakadu.
