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Source code escrow is the deposit of the source code of software with a third-party escrow agent. Escrow is typically requested by a party licensing software (the licensee), to ensure maintenance of the software instead of abandonment or orphaning.
A Source Code Escrow provides a secure environment for storing the software's source code, preventing unauthorized access and ensuring that the intellectual property rights of both the developer and the licensee are protected.
Escrow agreements provide security by delegating an asset to an escrow agent for safekeeping until each party meets his or her contractual obligations.
The objective of source code escrow is to ensure continued availability of software support and maintenance.
A source code escrow agreement typically instructs the agent to release the source code to the licensee if and when a specified event occurs, such as the licensor becoming insolvent or defaulting on its maintenance obligations under the principal license agreement.
An escrow agreement refers to a contract that outlines the terms and conditions of a transaction for something of value ? such as a bond, deed, or asset ? which is held by a third party until all conditions have been met.
A Software Escrow Agreement protects your investment by guaranteeing the long-term availability of third-party software and data while preserving the developer's Intellectual Property Rights (IPR).