Benefits From Software Escrow Services Article Source:

The term escrow basically means a contract (usually protection) between two parties who deposit something valuable to the third party as the agent. It could be money, documents, intellectual property. These valuable things are held by the agent until a certain condition. So, software is said to be in escrow when the source code of the software is being held by a third party, or escrow agent. The licensee of the software or the company who use the software can request the agent to hold. Therefore, in other words, software escrow service is a form of protection to the licensee of software to ensure that they can have access to the source code, if things go wrong.

A programmer creates a particular program by writing in a source code. In some kinds of programs, this source code can be transferred into executable programs (for example in files with its extension ending with.exe file), so you can just use the program applications and install them for your use. Anyone who has knowledge or experience about this software executable source code will be able to create application by their own. When the company who developed the software file for bankruptcy, or not deliver on the maintenance and updates of the software that have been promised by the developers, then the escrow agent can release the software source code to the licensee for them to work with.

Nowadays, there are hot issues about deception of this. Those sometimes involve huge amount of money. By using an escrow agreement, a purchaser will have some form of protection, and is now more effective as software and source code are involved. As the cost of developing some software is incredible these days, by using an escrow agent you do have some protection.

The software developer can be protected against fraud by using escrow. It takes a huge amount of money to develop some software programs, and could be months or years in some cases. To make both parties understand what is expected of them, the software escrow agent can set up an agreement with the licensee and the licensor. Whenever the terms of condition is not fulfilled, then the escrow agent can take the appropriate action already decided in the escrow agreement. The services offered in software escrow for example: software escrow, source code escrow, and technology escrow services to match the needs in business.