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Important Things You Should Know About Software Escrow Services
Escrow is a contract that is able to protect two parties who may deposit something very valuable to an agent being the third party. It may be money, intellectual property, or it could even be important documents. These things will be held by the agent until there is a certain condition met. So, when it comes to software, it will be in escrow once a third party, also known as an escrow agent, is taking hold of the source code of such software. The ones who will be requesting the agent hold it is the licensee or the company of the software. 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.
It is the programmer who writes a source code in order to create a particular program. Some of these programs have source codes that can be transferred to programs known as executable programs (files with “.exe” extensions), so it means to say that a user will be able to use the program applications so that it would be easier for users to install. Anyone who is knowledgeable or those who have the experience about such executable source code will then be able to create applications by their own. 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.
You should also know for a fact that there have been issues of deceptions for this. Ones that would involve a great deal of money. Using escrow agreement will give the purchase some form of protection that is definitely as effective as anybody can expect it to be. 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.
The software developer will enjoy protection especially against fraud if they use escrow. Developing software programs could not only take you months or years but a huge amount of money as well. The licensee and the licencor will have to be in agreement which will be set up by the software escrow agent in order to make both parties understand what they are to expect. Should they fail to meet the terms of condition, the escrow agent will then take proper action that is already decided in the escrow agreement. Here are the services you can avail from software escrow: software escrow, technology escrow, and source code escrow services whichever would match your business needs.
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