Well, My idea if it is not going to be release publicly is to perhaps release it on request under some form of non disclosure agreement / eula, that way he can control who gets the source while at the same time, allowing people to tweak the client as they need to. This will also allow others to make and submit bugfixes and further the development. So in essance it could be a controled open source project.
That is my suggestion, to atleast give him a sort of safety net if he does not feel comfortable releasing the source to everyone.
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