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Important Things You Should Know About Software Escrow Services

When you talk about escrow, it basically means a contract which usually means protection between two parties who were able to deposit something of value to the third party as the agent. It may involve money, intellectual property, or it could be documents. The agent will be expected to take a hold of such valuable things until everybody reaches a certain condition. 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. It is the licensee or the company of the software who will be the ones to request escrow agents to hold it for them. Therefore, to put it simply, software escrow services is made in order to protect the software’s licensee so that they will still be able to access the source code in case something goes wrong.

A programmer writes a source code in order to make 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 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.

There are also issues regarding fraud or deceptions nowadays. And these sometimes involve such a huge amount of money. The purchaser will have protection if he is able to use an escrow agreement and is even more effective as far as source code and software are involved. Given the fact that the costs involved in developing software these days are quite high, an escrow agent will be the best thing for you to gain some protection.

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. Software escrow agent will have to set up an agreement with both the licensee as well as the licencor just so both parties will be able to understand what exactly is expected of them. In case the terms of conditions are not fulfilled, you can expect the escrow agent to take appropriate actions within the escrow agreement decided by both parties. The services offered by software escrow services are: software escrow, technology escrow, as well as software escrow.