Guide to Software Escrow Services
When we speak of software escrow services what we mean is a source code software deposit involving a third party escrow agent.
Basic escrow is requested by the licensee who in this case is the one in charge of the maintenance of the software.
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.
Those who are licensed should understand that escrow has necessities that need to be met. Software escrow service offer custom software to different companies which are very vital to the company itself.
Whether the licensor is in a position to do so or not due to bankruptcy or other issues, operations and maintenance of company software shall continue.
Doing this is possible if you get the updated copy of the source code. 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.
In the solution offered by software escrow services which can help do away with conflicts of interest, and if the maintenance of the software cannot be assured as stated in the contract agreed between the two parties, then the licensed person is assured that he can get his access to the source code.
One of the benefits that come along with the software escrow services is free software.
You need to understand the point right before singing any contract, and you need to read it for yourself to understand the terms and condition which will be written in black and white.
There is a good description in the escrow agreement which applies to clients who seek to develop custom software and that which is not available to the general public.
This software was developed specifically for you and design to fit to your liking and your office operations. Free software are also referred to as open source or ransom ware.
Many companies adopt a software escrow process because of its benefits. With the escrow agent, there is an incentive for the licensee in investing in the source code. Software develops through this can provide software services without divulging their secrets and intellectual property.
Licensees can certify software evolution and maintain and upgrade functionalities over time with the optional services provided by the escrow agent. The licensee then has the ability to maintain an application in-house indefinitely or it gives him the luxury of taking his time until a replacement technology can be identified and implemented with a new vendor.
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