HOW TO PROTECT YOUR CUSTOM SOFTWARE ASSETS USING SOURCE CODE ESCROW.
A source code escrow is a guarantee to companiesthat in procuring bespoke solution from the software developers. A custom software is a critical mission to companies and if the buyer are unable to continue maintaining and supporting the software as a result of bankruptcy, it can cause a major problem to the licensee. One conceivable arrangement would be for the licensee to approach the breakthrough source code. It is good to note that most of thesoftware companieswill not agree to this because the source code is their intellectual property and they will be willing to give it to the license.
It is at this point the source code escrow is introduced by companies. It is one of the best solutions to a conflict of interest in a company. The source code is given to an outsider or a third party and the code is released to the licensee when the buyer is unable to continue providing support and maintenance as per the agreement of the contractual source escrow code agreement. It is worth noting that the software escrow agent is typically a company specializing in the source code service and it should completely independent for both the licensor and the licensee. The following are the typical sources of source code escrow agreements.
The first thing we will look at is the provision of source code escrow is a definition of scope and the subject of the escrow, mainly this includes the source code of a specific software solution and anything that would be required to maintain the software independently such as documentation and software tools.
Another consideration they should be made is looking at the conditions that meet for the escrow agent so that they can release the source of code to the licensee,for instance, bankruptcy of the software buyer or the cancellation of the development project.
Specifics of what rights the licensee has with respect to the source code after the product is discharged for example the privilege to alter the code to fix bugs.
It is important that you consider is the determination of administrations the escrow operator gives past straightforward guardianship of the product, the specialist may, for example, manufacture the product and watch that the paired matches the adaptation provided to the licensee.
Any charges because of the specialist for givingescrow administrations. If a bankruptcy occurs.], on the side of the software developer, the developers creditor may be legally entitled to seize all the aspects such as source code escrow and this may prevent or may delay the release of the software to the licensee.