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.
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.
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.
In the solution offered by software escrow services which can help do away with conflicts of interest, and if the maintenance of the software cannot be assured as stated in the contract agreed between the two parties, then the licensed person is assured that he can get his access to the source code.
One of the benefits that come along with the software escrow services is free software.
Before signing any contract, you need to understand what it entails so it is important to read the fine lines of the terms and conditions which are written to you in black and white.
The escrow agreement is well described and is applicable to clients who seek custom software development which generally will not be made available to the general public.
With this software design, it will only fit your needs and the needs of your business operations. When there is free software it is called open source of ransom ware.
Many companies adopt a software escrow process because of its benefits. 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.
Licensees can certify software evolution and maintain and upgrade functionalities over time with the optional services provided by the escrow agent. 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.