The Importance of Software Escrow to Business Companies
The computer is one of the most flexible, useful and the most popularly bought modern devices all over the world, and it is designed to function by allowing the user to instruct this certain device to carry out automatically, sets of arithmetic and logical operations. 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.
Running a company that produces software can be very demanding and critical to these business owners, especially in times when the licensor or their business partners were unable to do their responsibilities and some of the most common reasons includes merger, obsolescence, acquisition and bankruptcy, and these business companies are using the source code in order to maintain, fix and operate their products to their clients. Mostly, the desires of the owners of these companies is to ensure that their software products will continue to operate and that can be achieved once they obtain a copy of the most up-to-date source code of their product and one of the popular solutions for these is by creating a contract or agreement with the use of a source code escrow. Another term used for source code escrow is software escrow, and it is a method of mitigating and lightening any possible risks to happen when the three basic parties during the negotiation of obtaining the license for a software product, and upon the successful agreement between the licensor and licensee, the source code of their products will be secured by a trusted escrow agent. The different agreements involved in the source code escrow includes obliging the licensor to place or put updated or the recent versions of the software in escrow in specific period of time; 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; and specifying the conditions that must be met by the agent to release and give the source code to the licensee. 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.