Information on 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.
If the licensor gets bankrupt or any other reason that he fails to maintain or update the software as formally agreed upon, then the source code of the software will be released to the licensee.
If you are the license owner you should understand that escrow has requirements 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.
Doing this is possible if you get the updated copy of the source code. Most licensors will be reluctant to give out the source code because this represents a trade secret which is actually 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.
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.
Adopting a software escrow process is convenient for many reasons. Investing in the source code for licensees is encouraged by the presence of this escrow agent. Software develops through this can provide software services without divulging their 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. 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.
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