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If you want to experiment with completely GPL:d image compression algorithm, you can download my GWIC (GNU Wavelet Image Codec) image compression algorithm. It is certainly alpha quality and the compression performance is not of highest state of art (but neither is WI :) ). In fact the compression performance should be somewhat comparable to WI.

I have not done any development for GWIC lately, because of the lack of interest, but have already almost ready to use new version of it, if someone is interested in integrating it to some other program. GiMP anyone ?

It is quite easy to add progressivity (in fact the format already supports it, but I have not implemented probressive decompressor), regional focusing (in fact I have already implemented that some years ago in another compression system) or alpha channels. Also I have implemented distortion limiting to the compression (not integrated into GWIC yet), which allows the user to specify the exact quality of the image, not only the quantization or target image size