The Parallax Inc software for the Basic Stamp had the ability to save the object code image of a compiled program and to download that into a chip so software could be delivered without the end-user being able to see the source code, however, for those who knew what they were doing, the object code could easily be converted back into source code. Such a scheme would stop casual users getting at the source code, but wouldn't stop a determined or inquisitive 'hacker'.
There is no equivalent mechanism for the PICAXE that I'm aware of, although Rev-Ed did say they may <i>possibly </i> add this at some time.
I also recall mention of a command line program which would upload to a PICAXE, but I believe that still compiled the source code so that wouldn't help you.
The only way to protect source code at present is to obfuscate it; jumble up the code, use meaningless label and variable names, use confusing code flow and bizarre logic to confuse the reader and make them give up hope of ever understanding what it does.
Some programmers have a natural talent for that
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