Software Escrow

When you have commissioned a company or individual to create software for you, it can become necessary for them to do maintenance upgrades and so on. You will need to have access to the source code of the specific software program, if for some reason the programmer files for bankruptcy, fails to maintain the system or keep his end of the bargain.

This is why most software programmers and licensees use Software escrow, to keep the source code safe. A Software escrow agent will keep this code safely in an account, and if the licensee needs it he can retrieve it from the agent. This prevents the programmer using his software for other companies or client, or for his own personal use that could jeopardize your business.

A Software escrow agent is easy to find online, and it is usually easier for the programmer to pick and pay for an agent. This means that if more than one licensee requests the use of Software escrow, there are far less hassles as the programmer will be dealing with the same person. When you are looking for an escrow agent be sure to check the background details of the company, and that they have enough assets and financial insurance coverage in case of a dispute.

The costs for Software escrow are between $1000 and $2000 per year, but certain agents may offer discounts to those programmers who have many licensees that want to use the Software escrow system. When joining a Software escrow the parties should be aware of how the codes and any updates will be deposited, where they will go, and how often they are deposited.

There should also be set procedures in place of how to get the codes released, and for what reason this can occur. The escrow agent should always inform both parties of a release, any responses and counter arguments, and allow them the opportunity that they have to seek a court order. 

Software escrow is a program that both software developers and the clients can benefit from, and most of the reputable programmers choose to work this way because they know that they are giving their clients the best service for their money. Some clients may not request Software escrow to be used for the duration of a working relationship, but it can be explained to them that this will actually safeguard them if the programmer decided not to finish the job properly or not continue to maintain the software that he or she has written.

Even though the costs of Software escrow may put some new programmers and clients off, it will be better in the long run to use a Software escrow agent. Their valuable service makes it easier for clients and programmers to do business, and ensures that both parties are happy and remain confident in each other. The agents will make sure that the source code is kept safe and secure, just as if you were depositing money into a bank for safe keeping.