What Are 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.
Basic escrow is requested by the licensee who in this case is the one in charge of the maintenance of the software.
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.
Escrow has necessities that need to be met, and the parties who are licensed to have this should understand this. The software escrow services offer custom software to different companies which are also vital and critical to the company.
The operations and maintenance of the company should continue even if the licensure is not in the position do so whatever the reason may be.
Doing this is possible if you get the updated copy of the source code. However, licensors are often reluctant to agree to this because the source code represents a trade secret and generally as you may expect, this is closely guarded.
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.
One of the benefits that come along with the 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 will be found to be well described and which is applicable to clients who had custom software developed and which generally will not be made available to the general public.
This software was developed specifically for you and design to fit to your liking and your office 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. 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.
Source: https://www.businessblogshub.com/2016/12/what-on-earth-is-an-escrow/