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Mozilla was a pioneer in this area. It started offering a US$500 bounty for security bugs in August 2004. Since then, it's had more than 120 bugs reported by about 80 researchers. The project recently upped its bounty and is now paying out a maximum of $3,000 for critical security bugs. A few weeks later, Google announced that it, too, would pay up to $3,000 for security bugs reported in its products.
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