Software Escrow Services: What You Need To Know
Escrow is a contract that is able to protect two parties who may deposit something very valuable to an agent being the third party. It may involve money, intellectual property, or it could be documents. The agent may hold such valuables until a certain condition. So with that in mind, a software is said to be in escrow if a third party, or escrow agent, is holding the source code of the software. The software’s licensee or the company who is utilizing the software will be the ones to request the agent to hold. In other words, when you talk about software escrow services, it considered to be a form of protection to the licensee of the software to make sure that they will be able to access the source code when things go wrong.
It is the programmer who writes a source code in order to create a particular program. There are programs where source codes are transferable to so that users will be able to use the program applications just by installing them. Anyone who is knowledgeable or those who have the experience about such executable source code will then be able to create applications by their own. When the developer of the software files for bankruptcy, or perhaps they were not able to deliver on the updates and maintenance of the software that they promised, the escrow agent will now have the authority to release the software source code to the licensee so that they can work with it.
Issues regarding fraud is actually on the rise these days. And these sometimes involve such a huge amount of money. If you use an escrow agreement, the one who purchased it will certainly have some form of protection that is effective as far as software and source code are involved. Given the fact that the costs involved in developing software these days are quite high, an escrow agent will be the best thing for you to gain some protection.
The best thing about escrow is that the software developer will be able to protect himself against fraud. Developing software programs could not only take you months or years but a huge amount of money as well. In order to make both parties understand just exactly what they have to expect from software escrow agent, an agreement will be set up with both the licensee and licencor. In case the terms of conditions are not fulfilled, you can expect the escrow agent to take appropriate actions within the escrow agreement decided by both parties. Here are the services you can avail from software escrow: software escrow, technology escrow, and source code escrow services whichever would match your business needs.