Important Things You Should Know About Software Escrow Services
Escrow is a contract that is able to protect two parties who may deposit something very valuable to an agent being the third party. It may involve money, intellectual property, or it could be documents. The agent will be expected to take a hold of such valuable things until everybody reaches 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. 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 programmer writes a source code in order to make a particular program. 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 knowledgeable or those who have the experience about such executable source code will then be able to create applications by their own. 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. And these sometimes involve such a huge amount 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. With the cost involved in software developing these days, you will definitely enjoy the benefits given by the services of escrow agents.
The software developer will enjoy protection especially against fraud if they use escrow. 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. The escrow agent will have to take appropriate action whenever the terms of condition are not met which has already been 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.
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