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The Importance of Software Escrow to Business Companies

One of the most popular and the most useful technologies of all time, is the computer, which is a device that can be instructed by the user to carry out set of logical and arithmetic operations in an automatic manner. The two primary parts of a computer are the hardware which cover all of the parts of the computer that are physical objects such as computer chips, graphic cards, sound cards, memory or RAM, motherboard, displays, cables, keyboards, printers, mouse, power supplies and circuits; and the software which are the parts of the computer that do not have a material form, such as protocols, data, programs, encoded information or computer instructions, and libraries. An example of a computer software is the source code and it is defined as any collection of computer instructions which are written in ordinary text or with the use of a human-readable programming language, which is also designed to facilitate the jobs of efficient computer programmers.

There are a lot of software developer companies all over the world, and they are mostly making use of the source code in order to maintain and operate their products to their customers, however, in this kind of business industry, it can be very critical and demanding, specifically when their partners or the licensors were not able to comply on their work duties, and this may be due to different reasons, such as acquisition, bankruptcy, obsolescence and merger. Mostly, the desires of the owners of these companies is to ensure that their software products will continue to operate and that can be achieved once they obtain a copy of the most up-to-date source code of their product and one of the popular solutions for these is by creating a contract or agreement with the use of a source code escrow. Source code escrow is also called as software escrow, and it is a way of lightening or mitigating any risk to happen when two or more parties negotiate for the license of the software application, and once these developer companies will create their contract of software escrow, the source code will be placed in a secured account handled by a trusted escrow agent, who acts as the third party. The agreements of source code escrow includes specifying the conditions that must be met by the agent to release and give the source code to the licensee; obliging the licensor to place or put updated or the recent versions of the software in escrow in specific period of time; specifying the scope and the subject of escrow; circumscribing the rights obtained by the licensee with respect to the source code after the software is released; providing the fees of the escrow agent for his efficient services; providing non-compete clauses in the agreement of license; and specifying the services provided by the escrow agent. The software developer companies who wants to obtain more accurate information about software escrow and wants to hire the services of the best escrow agent in their local area can look for them through the recommendations and word of mouth of families, colleagues and lawyers, or through the use of the internet.

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