First things first, the critical aspects of software escrow agreement needs to be discussed and agreed upon. When setting up the terms, the software provider requires answering a few questions, such as when should the software be released, what would be limitations and freedom given to the licensee once the software is released, how often should the software be updated, and whether or not testing or verification is required for the software that is to be deposited in the escrow.
Once the terms of the software escrow are set up, all the necessary documents like the software source code, construction instructions, customer data, virtual machines, and list of developers, among other important materials, which ensures the software works just fine even after release, needs to be submitted to EscrowTech India.
EscrowTech India has secure escrow vaults in which we store all the received source codes and deposit materials. The documentation is held securely in these vaults until any of the mutually agreed upon release conditions occur. The release usually happens because of obsolescence, bankruptcy, acquisition or merger, or failure to maintain the software.
Whenever the software is updated, and new versions of it are released, escrow is also updated to keep up with the contract. This ensures that the licensee gets the full benefits of the software they are using currently. EscrowTech India automates the update process, ultimately saving time and efforts.
If the software provider comes under the agreed release condition, the licensees will still want access to the source code and other documentation to keep their mission-critical applications up and running.
EscrowTech India immediately releases the escrow materials to the software user abiding the rules and regulations set in the escrow agreement.
In case the software license is terminated without any release condition occurring, the escrow materials can be destroyed or returned to the software provider based on the provider’s wishes.
When making a major software purchase, the licensee would want to access the source code, and all the necessary documentation used to maintain and operate the software in case if the software provider goes out of business. It is the responsibility of the software to make sure that their licensees do not suffer in any case.
Now, when the vendor is still active and doing business, they cannot just provide the source code and other confidential materials to the licensee. It is a big business risk because there is no assurity that the licensee will keep the source code safe and confidential or make use for personal gain. This is why a software escrow and source code escrow is needed for a software provider
From the perspective of a licensee, they will face challenges if they don’t have access to the source code and the required documentation to keep the software updated and well-functioning. There is no way a licensee can continue to use the software without the source code if the software provider goes out of business. So, a software escrow is created to safeguard the relation between the vendor and the licensee.
We are in this industry for over two decades years and have helped hundreds of customers with their software escrow and source code escrow needs.
While we have a standard agreement for escrow services, there is also an in-house counsel that can work with your lawyers to customize the agreement based on your wishes.
We use state-of-the-art escrow vaults to safely store the escrow agreements that cannot be penetrated by any means.
We guarantee no unpleasant surprises. It is fair and unpredictable.