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The different types of escrow services.

February 18, 2013

Escrow is an ancient legal term referring to a deed, which only becomes effective upon the occurrence of a future event.
There are many different types of escrow agreement available worldwide but I am going to focus on the services that are offered in the world of technology escrow. Technology escrow protects the rights of a user to continue using technology if the creator is no longer available to provide the required service.

  • Software escrow

The storage of application source code that will enable a user to maintain a software application should the supplier fail or no longer be in a position to support the software application.

  • Information escrow

If the material that is being licensed is chemical formula, design schematics, process specifications or some other form of information that the licensee relies on to deliver a service or product to its clients.

  • Website escrow

If the critical IP is a website that is a combination of front end HTML and a backend database driven application, often the licensee will own the HTML content i.e. images or words but the technology supplier will own the HTML coding that enables the website to function.

  • Developer escrow

If an application is being written for a user then the user may wish to protect the development at each stage of the process. This type of escrow allows for the source code or IP to be stored at significant milestones in the development process with a final delivery of the completed project at some other target date.

  • SaaSe/Cloud

These agreements have been designed for the unique challenges that managed cloud application delivery and infrastructure present to a business. In this type of agreement the operational components and the data are equally as important as the source code.

  • Enterprise escrow

If an organisation has many technologies that are licensed from different IP owners then a strategic umbrella agreement maybe the most efficient way of managing all the technology suppliers.

  • Verification testing

Provides assurance that the escrow deposit material can be rebuilt into a testable version of the application. By auditing the build instructions and completing a full rebuild of the application we are able to confirm that you will be able to rebuild and launch the application in the event of a release.


written by David Clee

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