The Reason Why Software Escrow Agreement is Very Important
One of the most popular and the most useful technologies of all time, is the computer, which is a device that can be instructed by the user to carry out set of logical and arithmetic operations in an automatic manner. The two basic parts of the computer device are the hardware which is the part of the computer that are physical in form, and examples for these includes graphic cards, sound cards, memory or RAM, motherboard, displays, cables, keyboards, printers, mouse, power supplies, circuits and computer chips; and the software such as data, programs, encoded information or computer instructions, libraries and protocols that do not have a material or physical form. Source code is an example of a computer software, and it is any collection of computer instructions written using an ordinary text or a human-readable programming language and it is designed to facilitate the work of the computer programmers.
There are a lot of software developer companies all over the world, and they are mostly making use of the source code in order to maintain and operate their products to their customers, however, in this kind of business industry, it can be very critical and demanding, specifically when their partners or the licensors were not able to comply on their work duties, and this may be due to different reasons, such as acquisition, bankruptcy, obsolescence and merger. Mostly, the desires of the owners of these companies is to ensure that their software products will continue to operate and that can be achieved once they obtain a copy of the most up-to-date source code of their product and one of the popular solutions for these is by creating a contract or agreement with the use of a source code escrow. A software escrow is another term used for source code escrow, and it is basically a way of mitigating and lightening any possible risk to happen, which is why a negotiation process for the license of the software applications takes place, and once the developer companies will be successful in negotiating with their partner, the source code will definitely be secured in an account handled by an escrow agent, who acts as a trusted third party. The different agreements involved in the source code escrow includes obliging the licensor to place or put updated or the recent versions of the software in escrow in specific period of time; specifying the scope and the subject of escrow; circumscribing the rights obtained by the licensee with respect to the source code after the software is released; providing the fees of the escrow agent for his efficient services; providing non-compete clauses in the agreement of license; specifying the services provided by the escrow agent; and specifying the conditions that must be met by the agent to release and give the source code to the licensee. The business companies who wants to learn more about software escrow and wants to find the best escrow agent, can do so through the use of the internet and from the word of mouth of lawyers, colleagues and families.
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