Protecting Your Software With Software Escrow
If you already know about escrow, then you know that it protects two parties by using a third, a trusted escrow agent, so it will hardly surprise you to learn that software escrow is a means of protecting both the buyer and the seller of big ticket software. It has not always been possible to use escrow for software, but then there hasn’t always been software, but not everyone is aware of its purpose.
For the developers of software, using software escrow is a way to reassure a buyer, since if you default on the agreement, the source code of your software may be given to the buyer by the escrow agent. This only occurs when you trigger certain events stated in the escrow agreement, like not maintaining the software, but it does reassure the purchaser having this documented for expensive software. If you look at escrow through their eyes, you need some sort of reassurance that, after a certain number of years, you or your company will still be around maintaining the software you are using, otherwise they may have to throw your software out and start all over with a different company. Obviously, this is extremely expensive and time consuming, so it makes sense that the purchaser of pricey software requests that software escrow be in place before they purchase it. Then they have the reassurance of knowing that if something occurs beyond their control, perhaps your company goes bankrupt, then in the worst case scenario they will still have the source code of the software to work with.
Not surprisingly there are a variety of software escrow agreements out there, but most can be easily adapted to suit your individual needs. As the seller of packaged computer software, then you are more likely to need a multi user plan, rather than the single user plan that is in use for companies who purchase highly specialized and customized software, that is very unlikely to ever be purchased by anyone else. Software escrow services can provide you with these documents, which you can adjust to suit your particular requirements.
Before choosing a software escrow service to use, remember to do a thorough check, making sure that the company has a good reputation, that there is no negative feedback concerning them on the internet, and do a Better Business Bureau too to find out if there have been any conscerns recorded there.
Confirm that they have been around for a time offering escrow services, and of course, ask for the pricing for their escrow service. When you have done this, choose the one that you feel most impressed with, and work on adjusting the escrow agreement so that it reflects your needs. Obviously, the party you are dealing with may also need to make some adjustments, so find out from the escrow company to see if they will charge you for these updates. {It is useful to know this in advance.Knowing in advance what your fees are liable to be is very valuable}.
Then, having decided on your escrow service, you can get your software escrow agreement finalised and set in motion, and the buyer, the seller and the escrow agent will be satisfied with the escrow agreement.