Software Escrow Services: What You Need To Know
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 be money, intellectual property, or it could even be important 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 ones who will be requesting the agent hold it is the licensee or the company of the software. 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. Some programs are made with a source code that is transferable to executable programs (such as files with extensions ending in “.exe”), so that users can simply use the program application just by simply installing them to their computers. Anyone who is familiar or have the experience about software executable source code can now create applications by themselves. 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.
Issues regarding fraud is actually on the rise these days. And these sometimes involve such a huge amount of money. Using escrow agreement will give the purchase some form of protection that is definitely as effective as anybody can expect it to be. As there seems to be quite an incredible cost involved in developing some software these days, it would be best if you avail software escrow services.
The best thing about escrow is that the software developer will be able to protect himself against fraud. Developing some software programs would actually involve a huge amount of money and it could take months or even years. The licensee and the licencor will have to be in agreement which will be set up by the software escrow agent in order to make both parties understand what they are to expect. 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. You can actually choose from the following software escrow: source code escrow, software escrow, and technology escrow services.