The Reason Why Software Escrow Agreement is Very Important
The computer is one of the most flexible, useful and the most popularly bought modern devices all over the world, and it is designed to function by allowing the user to instruct this certain device to carry out automatically, sets of arithmetic and logical operations. The two primary parts of a computer are the hardware which cover all of the parts of the computer that are physical objects such as computer chips, graphic cards, sound cards, memory or RAM, motherboard, displays, cables, keyboards, printers, mouse, power supplies and circuits; and the software which are the parts of the computer that do not have a material form, such as protocols, data, programs, encoded information or computer instructions, and libraries. A source code is basically, an example of a software, and it is defined as any collection of computer instruction written with the use of a human-readable language of programming or ordinary text which can be interpreted only by the people who have the knowledge in programming and software development.
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. Each and every business owners of software developer companies have the common desire of ensuring that the software products that they have created for their customers will still continue to operate and that can only be achieved by having a copy of the recent and up-to-date source code of the product, and the solution for this is through the use of a source code agreement contracts. 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 various agreements involved during the process of achieving a source code escrow includes 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; specifying the conditions that must be met by the agent to release and give the source code to the licensee; and obliging the licensor to place or put updated or the recent versions of the software in escrow in specific period of time. 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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