Important Things You Should Know About Software Escrow Services
Escrow basically means a contract that deals with protection between parties who deposit something of high value to a third party being the agent. It may be money, intellectual property, or it could even be important documents. These things will be held by the agent until there is a certain condition met. So with that in mind, a software is said to be in escrow if a third party, or escrow agent, is holding the source code of the software. The ones who will be requesting the agent hold it is the licensee or the company of the software. In other words, when you talk about software escrow services, it considered to be a form of protection to the licensee of the software to make sure that they will be able to access the source code when things go wrong.
It is the programmer who writes a source code in order to create a particular program. 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 knowledgeable or those who have the experience about such executable source code will then be able to create applications by their own. When the developer of the software files for bankruptcy, or perhaps they were not able to deliver on the updates and maintenance of the software that they promised, the escrow agent will now have the authority to release the software source code to the licensee so that they can work with it.
Issues regarding fraud is actually on the rise these days. Ones that would involve a great deal 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. With the cost involved in software developing these days, you will definitely enjoy the benefits given by the services of escrow agents.
With escrow, the software developer will now be protected against fraud. 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. You can actually choose from the following software escrow: source code escrow, software escrow, and technology escrow services.