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Software Escrow

Software Escrow

Software escrow is the depositing of software systems source code with a third party escrow agent. Software Escrow Agreements are used to ensure continued use of critical business systems, they mitigate the risks that are inherent when an organisation relies on third party technology vendors. The software source code is released to the licensee if the licensor fails or otherwise fails to maintain and update the software are specified in the software license agreement.

  • Software Escrow is the deposit of application source code with a neutral third party, the escrow agent.
  • Software escrow is a smart, simple way of protecting intellectual property rights for software owners while ensuring the long-term availability of business critical systems for end users.
  • By arranging a software escrow agreement you are taking responsibility for your business continuity and ensuring that the systems you rely on are always available.
  • There may be circumstances when you reasonably want access to the source code and documentation for your business critical application and an escrow agreement will give you that access.


Types of Escrow Agreements

Type of Escrow
Suitable For
Single Licensee Software Escrow Software Licensee’s and Licensors. Created for software with a single licensee.
Multi-User Software Escrow Software Licensee’s and Licensors. The Multi-User escrow agreement is designed for the “off-the-shelf” software applications.
Developer Escrow Software Developers Designed especially for software developers, the agreement aims to protect the intellectual rights of the developed software.
Enterprise Escrow Corporations & Organisations This agreement is designed to protect corporate’s software systems. The escrow covers multiple software systems, usually 6 or more. The agreement provides a cost-efficient solution to managing a software escrow portfolio.
Verification Testing Solutions For anyone with a software escrow agreement. The Verification Testing Solutions is an extension of a given software escrow agreement. It’s designed to provide assurance that the deposited code can be built in a production environment.
Information Escrow Anyone in any industry. This agreement aims to protect a range of information based intellectual properties. Such as designs, processes, data and formulas.


Find our more about Software Escrow

If you require further information on Software Escrow you can contact us via our web enquiry form. Alternatively, you can speak to a specialist advisor directly by calling 0800 222 9200.

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