Contact Us at 877-628-7638 or [email protected]

Frequently Asked Questions

FAQs to National Software Escrow, Inc.

Frequently Asked Questions



About  National Software Escrow, Inc.

National Software Escrow, Inc. (NSE) is an independent service provider of software source code protection services for software companies and their end users.  NSE offers secure, off-site storage of source code in case of unforeseen events that could jeopardize the software’s ongoing functionality.

What is a Software Escrow?

A Software Escrow Arrangement is an agreement that protects both parties in a License Agreement. Its purpose is to provide a Licensee with access to a Software Vendor’s source code in the event that a specific release event agreed upon by the Parties occurs. This works by having a Software Vendor deposit their source code with an agent of an escrow account, who will then store it in a secure location. If a release event occurs, the agent will then release the source code to the Licensee. A Software Escrow Arrangement protects a Software Vendor’s interests, while permitting a Licensee to maintain their investment in the event that a Software Vendor is unable to continue its operations.

As a Licensee, what could happen if I did not establish a Software Escrow Agreement with my Software Vendor?

Services provided by National Software Escrow, Inc. protect the interests of both Software Vendors and their customers.  Your organization relies on Software Vendors for technical support and maintenance. This dependency, especially if it involves software related to mission-critical business operations, exposes you to certain risks.  If, for instance, a Software Vendor went out of business or stopped supporting the licensed software for other reasons, your organization would likely suffer considerable losses in revenue and productivity.  A Software Escrow Agreement gives you, under specific and controlled circumstances, access to the source code needed to maintain the technology.

As a Software Vendor, what could happen if I did not establish a Software Escrow Agreement with my customer?

Services provided by National Software Escrow, Inc. protect the interests of both Software Vendors and their customers.  As a Software Vendor, you rely on your customers to contact you directly for technical support and maintenance.  If source code was provided to your customers, a great deal of maintenance revenue would be lost due to your customers maintaining the software on their own.  More importantly, a competent programmer or independent contractor at your customer’s location could potentially modify the existing program and/or develop a competing program.

What types of Escrow Arrangements are available?

NSE offers the following Escrow Arrangements:

  • Single Beneficiary (1 Technology Vendor / 1 Licensee)
  • Multi-Beneficiary (1 Technology Vendor / multiple Licensees)
  • Multi-Vendor (1 Licensee / multiple Technology Vendors)

How secure is NSE’s Storage?

Escrow materials can be stored, maintained, secured and preserved in either Physical or Electronic Format.  Click here to learn more about NSE’s secure storage options.

Couldn’t I have my attorney act as Escrow Agent?

You could; however, NSE has retained the services of one of the country’s leading law firms whose specialists in computer related contracts understand completely the technical objectives of these sophisticated transactions.  Our Escrow Agreements are carefully researched, sophisticated legal instruments that will protect your rights, interests and investments, thus, saving you time and money from having an attorney draft one for you.  In addition, most parties wish to engage the services of a third party experienced in software source code protection services that is neutral and maintains a secure storage facility.

Why should I use National Software Escrow, Inc.?

Our professionals have been servicing clients since 1986.  With more than 35 years of experience, we are your trusted partner for software source code protection.

How can I get additional information and a quote?

Call NSE toll free at (877) 628-7638 or email [email protected]


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