Companies – Getting Started & Next Steps


What Are Software Escrow Services?

A source code software deposit which includes a third party escrow agent is a software escrow service.

The licensee who is in charge of the maintenance of the software is the one who requests basic escrow.

Failure of the licensor to update or maintain the software as formally agreed upon either because of bankruptcy or any other reason, then the licensee will be give the source code of the software.

If you are the license owner you should understand that escrow has requirements to be met. The software escrow services offer custom software to different companies which are also vital and critical to the company.

The operations and maintenance of the company should continue even if the licensure is not in the position do so whatever the reason may be.

You should have the updated copy of the source code if you are to do this. However, licensors are often reluctant to agree to this because the source code represents a trade secret and generally as you may expect, this is closely guarded.

Software escrow services then have a solution which will do away with this conflict of interest, where the source code escrow will assure that the licensed person can get his access to the source code when it has been established that the maintenance of the software cannot be assured as it was stated in the contract agreement which has been agreed upon by the two parties.

One of the benefits that come along with the software escrow services is free software.

Before signing any contract, you need to understand what it entails so it is important to read the fine lines of the terms and conditions which are written to you in black and white.

The escrow agreement will be found to be well described and which is applicable to clients who had custom software developed and which generally will not be made available to the general public.

This software was developed specifically for you and design to fit to your liking and your office operations. Open source or ransom ware are the terms used for free software.

Adopting a software escrow process is convenient for many reasons. With the escrow agent, there is an incentive for the licensee in investing in the source code. Meanwhile developers of the software are able to provide services without exposing their secret and intellectual property.

Escrow agents can provide optional services which can help licensees to certify the evolution of the software and maintain and upgrade functionalities over time. It give the licensee the ability to maintain an application in-house indefinitely or gives the licensee the luxury of taking its time until the replacement technology can be identified and implemented with a new vendor.

Source: http://www.andysowards.com/blog/2016/what-happens-if-a-business-you-work-with-goes-under/

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