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Information on Software Escrow Services

When we speak of software escrow services what we mean is a source code software deposit involving a third party escrow agent.

The licensee who is in charge of the maintenance of the software is the one 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. Custom software is offered to different companies by software escrow services which are very critical and 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.

Software escrow services then have a solution which will do away with this conflict of interest, where the source code escrow will assure that the licensed person can get his access to the source code when it has been established that the maintenance of the software cannot be assured as it was stated in the contract agreement which has been agreed upon by the two parties.

What you can benefit from a software escrow services is free software.

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.

Many companies adopt a software escrow process because of its benefits. With the escrow agent, there is an incentive for the licensee in investing 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. The licensee then has the ability to maintain an application in-house indefinitely or it gives him the luxury of taking his time until a replacement technology can be identified and implemented with a new vendor.

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