Guide to Software Escrow Services
A software escrow services is a source code software deposit which includes 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. The software escrow services offer custom software to different companies which are also vital and critical to the company.
Operations and the maintenance of the company software shall continue regardless of whether the licensor is not in the position to do so because of bankruptcy or other issues.
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.
With this software design, it will only fit your needs and the needs of your business operations. When there is free software it is called open source of ransom ware.
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. On the other hand, the company that developed the software can provide its services without exposing its secrets 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. 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.