Why Companies Use Software Escrow Services

Are you familiar of software escrow services? Is it beneficial to companies and software programmers? If this is the first time that you heard about software escrow service, then you can benefit by reading this article further.

Definition of Software Escrow Service

Software escrow service is the computer software source code deposit for also include the third party software escrow agent. Well, the word “escrow” refers to the contract of the two parties for depositing valuables to the agent as third party. It serves as their protection for these valuables like documents, money, intellectual property, and etc. These things will be considered escrow when these are held by third parties, especially the source code. The licensees of these computer software, or the businesses that utilize it can request agents to hold. In simple terms, these escrow services serve as protection for the computer software licensees so they will still access its source codes the moment issues arise. When these problems, like bankruptcies and lawsuits, the licensors will not be able to update or maintain the computer software as what is agreed on the agreement, hence the source codes are released to licensees.

The software programmers developed the source codes of the computer software, which are processed to become executable files with .exe extensions. These executable files are standalone and can run on their own, hence it is ready for use by the computer users. Nevertheless, when issues and problems arise, the software developers are hindered to make the changes, updates and maintenance to the source codes, thus escrow agents transferred these tasks are to the software’s licensees. Because of these contracts, the products will still serve its purposes despite the absence of the licensor. If you are a computer programmer and you don’t want these problems to arise in the near future, then you should carefully and cautiously choose your escrow service providers. To help you choose one, consider the tips showcased underneath.

1. Before inking a deal with any company, be sure to investigate first to know what service providers furnished dependable escrow services.

2. They should choose one which fit their requirements and which serve their purpose best.

3. Be sure to check and to read the contract first before inking one. When in doubt, consult your lawyers first.

4. You are advised to thoroughly check the contracts if these are suitable and applicable to you and to your clients.

Be sure to follow the pointers showcased in here whenever you are planning to get the services of these companies.