Guide to Software Escrow Services
A source code software deposit which includes a third party escrow agent is a software escrow service.
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.
Escrow has necessities that need to be met, and the parties who are licensed to have this should understand this. The software escrow services offer custom software to different companies which are also vital and critical to the company.
The operations and maintenance of the company should continue even if the licensure is not in the position do so whatever the reason may be.
You should have the updated copy of the source code if you are to do this. However, licensors are often reluctant to agree to this because the source code represents a trade secret and generally as you may expect, this is 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.
If you are going to sign an agreement contract with a software licensor make sure you know what the terms and conditions are by reading everything carefully which is easy as they are written in black and white.
The escrow agreement will be found to be well described and which is applicable to clients who had custom software developed and which generally will not be made available to the general public.
It is not available to any other entity because the software was specifically designed for you to fit your needs and useful for 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. With the escrow agent, there is an incentive for the licensee in investing in the source code. Software develops through this can provide software services without divulging their secrets and intellectual property.
Licensees can certify software evolution and maintain and upgrade functionalities over time with the optional services provided by the escrow agent. 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.