Software Escrow Services: What You Need To Know
When you talk about escrow, it basically means a contract which usually means protection between two parties who were able to deposit something of value to the third party as the agent. And by something valuable, it could mean documents, money, or even intellectual property. These things will be held by the agent until there is a certain condition met. 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. The main benefit of having software escrow services is to protect the licensee of the software making sure that they will still gain access to the source code even if something goes wrong.
It is the programmer who writes a source code in order to create a particular program. Some programs are made with a source code that is transferable to executable programs (such as files with extensions ending in “.exe”), so that users can simply use the program application just by simply installing them to their computers. Anyone who is familiar or have the experience about software executable source code can now create applications by themselves. When bankruptcy is filed by the company who developed the software, or if they were not able to deliver the updates and even maintenance of the software that they have actually promised, then escrow agents are expected to release the source code of the software to the licensee so that they will be able to work with it.
There are also issues regarding fraud or deceptions nowadays. Ones that would involve a great deal of money. Using escrow agreement will give the purchase some form of protection that is definitely as effective as anybody can expect it to be. Given the fact that the costs involved in developing software these days are quite high, an escrow agent will be the best thing for you to gain some protection.
With escrow, the software developer will now be protected against fraud. Developing some software programs would actually involve a huge amount of money and it could take months or even years. In order to make both parties understand just exactly what they have to expect from software escrow agent, an agreement will be set up with both the licensee and licencor. Should they fail to meet the terms of condition, the escrow agent will then take proper action that is already decided in the escrow agreement. The services offered by software escrow services are: software escrow, technology escrow, as well as software escrow.