Software Escrow Services: What You Need To Know
When you talk about escrow, it basically means a contract which usually means protection between two parties who were able to deposit something of value to the third party as the agent. It may be money, intellectual property, or it could even be important documents. The agent may hold such valuables until a certain condition. So, when it comes to software, it will be in escrow once a third party, also known as an escrow agent, is taking hold of the source code of such software. The ones who will be requesting the agent hold it is the licensee or the company of the software. Therefore, to put it simply, software escrow services is made in order to protect the software’s licensee so that they will still be able to access the source code in case something goes wrong.
It is the programmer who writes a source code in order to create a particular program. Some programs are made with a source code that is transferable to executable programs (such as files with extensions ending in “.exe”), so that users can simply use the program application just by simply installing them to their computers. 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 bankruptcy is filed by the company who developed the software, or if they were not able to deliver the updates and even maintenance of the software that they have actually promised, then escrow agents are expected to release the source code of the software to the licensee so that they will be able to work with it.
There are also issues regarding fraud or deceptions nowadays. And it usually involve 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.
With escrow, the software developer will now be protected against fraud. Developing some software programs would actually involve a huge amount of money and it could take months or even years. Software escrow agent will have to set up an agreement with both the licensee as well as the licencor just so both parties will be able to understand what exactly is expected of them. 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. You can actually choose from the following software escrow: source code escrow, software escrow, and technology escrow services.