The Reason Why Software Escrow Agreement is Very Important
One of the most popular and the most useful technologies of all time, is the computer, which is a device that can be instructed by the user to carry out set of logical and arithmetic operations in an automatic manner. A computer device is classified into two basic parts, such as the software which encompasses the parts of the computer that does not have any physical or material form and examples for this includes programs, encoded information or computer instructions, libraries, data and protocols; and the hardware which is the part of the device that have physical or material forms, and examples for this includes memory or RAM, motherboard, displays, cables, keyboards, printers, mouse, power supplies, circuits, computer chips, graphic cards, and sound cards. An example of a computer software is the source code and it is defined as any collection of computer instructions which are written in ordinary text or with the use of a human-readable programming language, which is also designed to facilitate the jobs of efficient 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. A software escrow is another term used for source code escrow, and it is basically a way of mitigating and lightening any possible risk to happen, which is why a negotiation process for the license of the software applications takes place, and once the developer companies will be successful in negotiating with their partner, the source code will definitely be secured in an account handled by an escrow agent, who acts as a trusted third party. The different agreements involved in the source code escrow includes obliging the licensor to place or put updated or the recent versions of the software in escrow in specific period of time; 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; and specifying the conditions that must be met by the agent to release and give the source code to the licensee. 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.
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