The basics of software escrow and code escrow agreements.
The aftermath of COVID-19 saw many employees forced into remote working conditions. Since so many workers around the globe are now either working from home or in a hybrid environment, a rise in demand for technology and software as a service (SAAS) has increased as well.
Any time a company is reliant upon proprietary technology for business-critical functions, an escrow agreement should be considered in order to maintain business continuity and protect critical applications. When it comes to your data center, it’s important to make sure your intellectual property is protected through a third-party escrow company.
What is a source code escrow agreement?
A software source code or code escrow agreement is an arrangement between a Technology Vendor and Licensee. Its purpose is to provide a Licensee with access to a Technology Vendor’s source code in the event that a release of escrow materials occurs. Utilizing a code escrow service ensures that your company’s investment in a software vendor’s solution isn’t impaired.
This works by having a Technology Vendor deposit their source code with an agent of an escrow account, who will then store it in a secure location either offline or in-house in a secured cloud environment. In the event of a release, the agent will then release the source code to the Licensee based on the previously agreed upon release conditions.
Entering into an agreement with an escrow agent is a good way to ensure your deposit materials remain safe and secure at all times.
What types of Software Escrow Agreements are there?
There are three escrow deposit agreements National Software Escrow offers our clients. Click any of the bolded lines below for more information regarding each type of arrangement from our software escrow services:
- Single Beneficiary Escrow Arrangement – Designed for (1) Technology Vendor and (1) Licensee
- Multi-Beneficiary Escrow Arrangement – Designed for (1) Technology Vendor and multiple Licensees
- Multi-Vendor Escrow Arrangement – Designed for (1) Licensee and multiple Technology Vendors
How do I get started with a Software Escrow Service?
Once you’ve spoken with an escrow agent and established a software escrow agreement, the next step is deciding which Escrow Storage Option works best for you. Through National Software Escrow, escrow materials can be stored, maintained, secured and preserved in either physical or electronic format.
Finally, after all the decisions have been made, you can fill out our Escrow Deposit Upload Form (if planning on depositing via electronic format) and rest easy knowing your technology escrow is in capable hands. For more information, Contact Us through our website, by telephone at 877-628-7638 or [email protected].