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.
The source code of the software will be released to the licensee in the event that the licensor is unable to maintain or update the software are stated in the agreement either because of bankruptcy or any other reason.
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. Since source codes are closely guarded trade secrets, you will expect licensors to be reluctant to give it.
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.
Free software is one of the benefits that come along with the software escrow services.
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. Open source or ransom ware are the terms used for free software.
Many companies adopt a software escrow process because of its benefits. The presence of this escrow process encourages licensees to invest in the source code. Meanwhile developers of the software are able to provide services without exposing their secret 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.