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. The agent will be expected to take a hold of such valuable things until everybody reaches a certain condition. So with that in mind, a software is said to be in escrow if a third party, or escrow agent, is holding the source code of the software. The ones who will be requesting the agent hold it is the licensee or the company of the software. In other words, when you talk about software escrow services, it considered to be a form of protection to the licensee of the software to make sure that they will be able to access the source code when things go wrong.
A particular program can be created by a programmer by writing a source code. 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 knowledgeable or those who have the experience about such executable source code will then be able to create applications by their own. 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. 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. With the cost involved in software developing these days, you will definitely enjoy the benefits given by the services of escrow agents.
The best thing about escrow is that the software developer will be able to protect himself against fraud. Developing some software programs could actually cost you a huge amount of money and the time it takes to finish it could mean 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. The escrow agent will have to take appropriate action whenever the terms of condition are not met which has already been decided in the escrow agreement. The services offered by software escrow services are: software escrow, technology escrow, as well as software escrow.
Citation: official site