The Essence of Using Software Escrow Services
When you talk about escrow it basically refers to an agreement which involves a third party who will hold the properties and assets in behalf of the transacting parties. The valuables could be in a form of intellectual property, documents or money. The items that the agent is keeping will be protected until certain instructions are given to them. Whenever a the source code of a particular software is kept protected and private by an escrow agent or the third party then the software is believed to be in escrow. The one capable for asking the agents to keep the software are the ones who will be using the software. Software escrow services are usually done by two parties which are both involved in a a software licensee transaction.
In order for programmers to make their own program they make use of source codes. If the source code is transferable and can be performed in other programs then you can simply obtain the source code and install it in your device. For those who have some knowledge in software executable source code will be able to devise an application they can call their own. If there is any breach of contract that the software developers made like bankruptcy and inability to update their software then it is possible for clients to gain access with the source code of their software through the escrow agent.
It is already a known fact that some people nowadays take advantage of other people. Most of the time, there is a big amount of money involved in this type of transaction. Since there is now an involvement of software and source code in an escrow contract, buyers of software can be assured that they are safe from those individuals who might lure them. If you want to be safe whenever you purchase software to a particular developer then you must keep in mind and apply this so called escrow agreement, this way you can avoid scams.
It is vital for software developers to enter in this kind of agreement for this will not just benefits their clients but to the as well. Developing your own program and software is no joke, you will need to spend a great deal of time, money and effort in order to make a high quality output. This is the right time to have a software escrow agent that will serve as the mediator of the whole transaction of the two parties, what they will do is setup the whole contract and let the two parties understand everything that they need to know. If there are certain terms that are violated in the agreement, the escrow agent has the right to perform appropriate action base on the contract or agreement.
Source: Full Report