The Reason Why Software Escrow Agreement is Very Important
The computer is one of the most flexible, useful and the most popularly bought modern devices all over the world, and it is designed to function by allowing the user to instruct this certain device to carry out automatically, sets of arithmetic and logical operations. The two primary parts of a computer are the hardware which cover all of the parts of the computer that are physical objects such as computer chips, graphic cards, sound cards, memory or RAM, motherboard, displays, cables, keyboards, printers, mouse, power supplies and circuits; and the software which are the parts of the computer that do not have a material form, such as protocols, data, programs, encoded information or computer instructions, and libraries. Source code is an example of a computer software, and it is any collection of computer instructions written using an ordinary text or a human-readable programming language and it is designed to facilitate the work of the computer programmers.
Running a company that produces software can be very demanding and critical to these business owners, especially in times when the licensor or their business partners were unable to do their responsibilities and some of the most common reasons includes merger, obsolescence, acquisition and bankruptcy, and these business companies are using the source code in order to maintain, fix and operate their products to their clients. The desires of these companies to make sure that it continues to operate can be easily achieved by gaining the copy of the updated and recent source code of the software, and one of the solutions for that most of these companies are using the source code escrow, which can help them ensure that they can have access to the source code. Another term used for source code escrow is software escrow, and it is a method of mitigating and lightening any possible risks to happen when the three basic parties during the negotiation of obtaining the license for a software product, and upon the successful agreement between the licensor and licensee, the source code of their products will be secured by a trusted escrow agent. The various agreements involved during the process of achieving a source code escrow includes specifying the scope and the subject of escrow; circumscribing the rights obtained by the licensee with respect to the source code after the software is released; providing the fees of the escrow agent for his efficient services; providing non-compete clauses in the agreement of license; specifying the services provided by the escrow agent; specifying the conditions that must be met by the agent to release and give the source code to the licensee; and obliging the licensor to place or put updated or the recent versions of the software in escrow in specific period of time. The business companies who wants to learn more about software escrow and wants to find the best escrow agent, can do so through the use of the internet and from the word of mouth of lawyers, colleagues and families.