What Are Software Escrow Services?
A software escrow services is a source code software deposit which includes a third party escrow agent.
The one in charge of the maintenance is the licensee who requests basic escrow.
Failure of the licensor to update or maintain the software as formally agreed upon either because of bankruptcy or any other reason, then the licensee will be give the source code of the software.
Those who are licensed should understand that escrow has necessities that need to be met. The software escrow services offer custom software to different companies which are also vital and critical to the company.
Whether the licensor is in a position to do so or not due to bankruptcy or other issues, operations and maintenance of company software shall continue.
In order to do so you should get the updated copy of the source code. Most licensors will be reluctant to give out the source code because this represents a trade secret which is actually closely guarded.
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. When there is free software it is called open source of ransom ware.
There are many reasons why it is convenient to adopt a software escrow process. The presence of this escrow process encourages licensees to invest in the source code. On the other hand, the company that developed the software can provide its services without exposing its secrets and intellectual property.
Optional services provided by the escrow agent can help licensees to certify the evolution of the software and maintain and upgrade functionalities over time. 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.