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.
The one in charge of the maintenance is the licensee who requests basic escrow.
The source code of the software will be released to the licensee in the event that the licensor is unable to maintain or update the software are stated in the agreement either because of bankruptcy or any other reason.
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.
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.
In order to do so you should get the updated copy of the source code. Since source codes are closely guarded trade secrets, you will expect licensors to be reluctant to give it.
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.
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.
There are many reasons why it is convenient to adopt a software escrow process. Investing in the source code for licensees is encouraged by the presence of this escrow agent. On the other hand, the company that developed the software can provide its services without exposing its secrets and intellectual property.
Optional services provided by the escrow agent can help licensees to certify the evolution of the software and maintain and upgrade functionalities over time. It give the licensee the ability to maintain an application in-house indefinitely or gives the licensee the luxury of taking its time until the replacement technology can be identified and implemented with a new vendor.