If You Read One Article About Software, Read This One
December 27, 2016
What Are Software Escrow Services?
A source code software deposit which includes a third party escrow agent is a software escrow service.
The licensee who is in charge of the maintenance of the software is the one who requests basic escrow.
If the licensor gets bankrupt or any other reason that he fails to maintain or update the software as formally agreed upon, then the source code of the software will be released to the licensee.
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.
Doing this is possible if you get the updated copy of the source code. Since source codes are closely guarded trade secrets, you will expect licensors to be reluctant to give it.
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.
If you are going to sign an agreement contract with a software licensor make sure you know what the terms and conditions are by reading everything carefully which is easy as they are written 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. Open source or ransom ware are the terms used for free software.
There are many reasons why it is convenient to adopt a software escrow process. With the escrow agent, there is an incentive for the licensee in investing in the source code. Software develops through this can provide software services without divulging their secrets and intellectual property.
Licensees can certify software evolution and maintain and upgrade functionalities over time with the optional services provided by the escrow agent. The ability of maintain an application in-house indefinitely is given to the licensee and also gives the licensee the luxury of taking its time until a new vendor can identify and implement a replacement technology.
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