Software Escrow Services: What You Need To Know
Escrow is a contract that is able to protect two parties who may deposit something very valuable to an agent being the third party. It may be money, intellectual property, or it could even be important documents. These things will be held by the agent until there is a certain condition met. In this case, if a software is in escrow, it means that the source code of such software is currently being held by an escrow agent. It is the licensee or the company of the software who will be the ones to request escrow agents to hold it for them. 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.
A programmer writes a source code in order to make a particular program. There are programs where source codes are transferable to so that users will be able to use the program applications just by installing them. Anyone who is familiar or have the experience about software executable source code can now create applications by themselves. The escrow agent can actually release the software source code to the licensee when the developer company of the software fails to deliver on the updates and maintenance of the software or if they file for bankruptcy.
You should also know for a fact that there have been issues of deceptions for this. Ones that would involve a great deal of money. Using escrow agreement will give the purchase some form of protection that is definitely as effective as anybody can expect it to be. 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. In order to make both parties understand just exactly what they have to expect from software escrow agent, an agreement will be set up with both the licensee and licencor. Should they fail to meet the terms of condition, the escrow agent will then take proper action that is already decided in the escrow agreement. You can actually choose from the following software escrow: source code escrow, software escrow, and technology escrow services.