Valuable Lessons I’ve Learned About Software

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. 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. Source code is an example of a computer software, and it is any collection of computer instructions written using an ordinary text or a human-readable programming language and it is designed to facilitate the work of the computer programmers.

A lot of software developer companies are making use of the source code in order to operate and the maintain their products and custom software, however, it can be very critical to them, especially when the licensor or their partners becomes unable to do so, which can be due to various reasons like bankruptcy, merger, obsolescence and acquisition. 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. Another term used for source code escrow is software escrow, and it is a method of mitigating and lightening any possible risks to happen when the three basic parties during the negotiation of obtaining the license for a software product, and upon the successful agreement between the licensor and licensee, the source code of their products will be secured by a trusted escrow agent. The agreements of source code escrow includes specifying the conditions that must be met by the agent to release and give the source code to the licensee; 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; and specifying the services provided by the escrow agent. 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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