HOW YOU CAN 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. The functioning of 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. The the source codeyou purchase should be able to access up- to -date information as well as 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.
This is the place source code escrow comes in. If there is a conflict of interest in the company source code escrow is the best solution. A third party person is used as the escrow code agent and the code is released to the licensee when the buyer is unable to continue providing support and maintenanceas per the agreement of the contractual source escrow code agreement. In short, 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 typical provisions of a source escrow agreement include the following.
The first 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.
The determination of administration of the escrow operator giving straight forward guardianship of the product, the specialist has the responsibility for the manufacture of the product and watch the the paired matches the adaptation provided to the licensee.
Also consider any fee that may be required due to the agent for providing escrow services. 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.
Cited reference: https://www.techprevue.com/