An escrow is basically used whenever two parties have an agreement or transaction wherein a third party is needed to temporarily keep the payment or asset until the transaction or agreement comes into effect. There are several kinds of escrow businesses and one type of escrow business is that which has a focus on software escrow which can be a corporation that can hold the escrow or individual persons that can hold on to the escrow. It normally doesn’t matter what kind of incorporation is involved as the entity that takes care of the escrow will try to minimize it’s responsibilities as much as possible.
Source Code Escrow
There are many types of escrow services. One of them is source code escrow. This is important to licensees or people that license the software from a software provider so that they can ensure that the software is maintained even if the licensor or software provider goes under, goes bankrupt or does not fulfill it’s obligation to maintain the software as agreed upon when they completed their software license agreement.
Posted in Software Escrow