Important Things You Should Know About Software Escrow Services
Escrow basically means a contract that deals with protection between parties who deposit something of high value to a third party being the agent. And by something valuable, it could mean documents, money, or even intellectual property. The agent may hold such valuables until a certain condition. So, when it comes to software, it will be in escrow once a third party, also known as an escrow agent, is taking hold of the source code of such software. The software’s licensee or the company who is utilizing the software will be the ones to request the agent to hold. 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.
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 familiar or have the experience about software executable source code can now create applications by themselves. 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. Ones that would involve a great deal 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. 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.
The software developer will enjoy protection especially against fraud if they use escrow. 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. 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. Here are the services you can avail from software escrow: software escrow, technology escrow, and source code escrow services whichever would match your business needs.