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. It may involve money, intellectual property, or it could be documents. 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 software’s licensee or the company who is utilizing the software will be the ones to request the agent to hold. Therefore, to put it simply, software escrow services is made in order to protect the software’s licensee so that they will still be able to access the source code in case 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. People who knows or have the experience about software executable source code can easily create applications without any difficulty. 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. And it usually involve huge amount of money. The purchaser will have protection if he is able to use an escrow agreement and is even more effective as far as source code and software 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.
With escrow, the software developer will now be protected against fraud. Developing software programs could not only take you months or years but a huge amount of money as well. 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. In case the terms of conditions are not fulfilled, you can expect the escrow agent to take appropriate actions within the escrow agreement decided by both parties. The services offered by software escrow services are: software escrow, technology escrow, as well as software escrow.