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What is Software Escrow?

An instrument designed to protect both parties in a License Agreement

What is 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 Technology Vendor’s source code in the event that a specific release event agreed upon by the Parties occurs.

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. If a release event occurs, the agent will then release the source code to the Licensee.

A Software Escrow Arrangement protects a Technology Vendor’s interests, while permitting a Licensee to maintain their investment in the event that a Technology Vendor is unable to continue its operations.