Smart Ideas: Solutions Revisited

The Reason Why Software Escrow Agreement is Very Important

The most useful, flexible and the most popular products of modernization, is the computer, and it is described as a device that can carry out the instructions of the users for a set of arithmetic and logical operations, automatically. The two basic parts of the computer device are the hardware which is the part of the computer that are physical in form, and examples for these includes graphic cards, sound cards, memory or RAM, motherboard, displays, cables, keyboards, printers, mouse, power supplies, circuits and computer chips; and the software such as data, programs, encoded information or computer instructions, libraries and protocols that do not have a material or physical form. Source code is an example of a computer software, and it is any collection of computer instructions written using an ordinary text or a human-readable programming language and it is designed to facilitate the work of the computer programmers.

A lot of software developer companies are making use of the source code in order to operate and the maintain their products and custom software, however, it can be very critical to them, especially when the licensor or their partners becomes unable to do so, which can be due to various reasons like bankruptcy, merger, obsolescence and acquisition. Each and every business owners of software developer companies have the common desire of ensuring that the software products that they have created for their customers will still continue to operate and that can only be achieved by having a copy of the recent and up-to-date source code of the product, and the solution for this is through the use of a source code agreement contracts. A software escrow is another term used for source code escrow, and it is basically a way of mitigating and lightening any possible risk to happen, which is why a negotiation process for the license of the software applications takes place, and once the developer companies will be successful in negotiating with their partner, the source code will definitely be secured in an account handled by an escrow agent, who acts as a trusted third party. The various agreements involved during the process of achieving a source code escrow includes specifying the scope and the subject of escrow; circumscribing the rights obtained by the licensee with respect to the source code after the software is released; providing the fees of the escrow agent for his efficient services; providing non-compete clauses in the agreement of license; specifying the services provided by the escrow agent; specifying the conditions that must be met by the agent to release and give the source code to the licensee; and obliging the licensor to place or put updated or the recent versions of the software in escrow in specific period of time. The business companies who wants to learn more about software escrow and wants to find the best escrow agent, can do so through the use of the internet and from the word of mouth of lawyers, colleagues and families.