I was impressed when I saw this story yesterday and really liked the idea behind Sprite Lamp, so I figured out the algorithm and wrote a program that replicates its basic functionality of generating normal maps for 2D sprites lit from four directions: http://i.imgur.com/H1H0R8k.png. The program will need some more work before it can be practically used but it's the same basic idea.
I intend to release it as a command line tool under a free license; I do not intend to compete with Sprite Lamp by building an artist-friendly GUI or implementing lots of fine-tuning. The idea has been used in games before and seemingly isn't patented but Snake Hill Games are, as far I can tell, the first to offer this functionality in a stand-alone tool. I would like to see them succeed but I also feel that having a FOSS implementation of this algorithm (mine or otherwise) would be a benefit to the community.
Should I wait until the end of the Kickstarter campaign (edit: or longer) to release it?