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How A Software Escrow Agent Can Help You
By Melissa Peterman
A software escrow agent is there to act as a neutral third party to protect your valuable source code or hold onto it while contracts and details are going through with a new developer, or hold onto the encrypted code should something goes terribly wrong. It is a legal arrangement to hold an asset for a specific amount of time until a situation arises between the two parties, a condition is broken and the software escrow releases the information. Here are a few ways software escrow agents help out buyers and developers.

Much like the keeper of a family’s secret recipe, a software escrow agent holds onto a valuable source code, written by a developer for safekeeping. As a buyer, if I choose to buy a piece of software and the developer is the only one that has the source code, or “recipe,” should something happen to the developer, if they went out of business, changed jobs, failed to keep up on updates of the code or were involved in a tragic plane crash- how would you be able to fix something on the support side of things with your software if all the pieces went down with the plane, for example. The software escrow agent would be the holder of the source code and would be a legal neutral third

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party, only able to release the information to you upon certain conditions- a plane crash or death would be one of them.

On the other side of the situation, a developer still needs to keep a job. With a neutral party like a software escrow agent to hold onto a developer’s livelihood, he/she doesn’t have to give all rights to the buyer. He/she can be paid for continued support and upgrades while the buyer is using the software and the software escrow agent insures the source code and copyrights are kept in a safe place.

The other benefit to have software escrow for a developer is that you are able to charge a little more for your software and it is more valuable when you have a software escrow agent, because it is less of a risk to use a source code that protects both the creator and the buyer. However- as a developer, if you fail to meet the standards agreed upon, another developer is allowed to come in and take over the source code for the buyer and manage, maintain and update your precious source code.

As well, a buyer should know that technology advances quickly and if the even that the contract was breeched, the buyer could discover that the source code was only applicable in older pieces of software and it may not be possible to find a developer that had the skills to modify the original source code, especially if the tools needed are obsolete or vendors have stopped selling necessary supplies.

There are risks in everything in life. Insurance is a gamble too, but trusting a software escrow agent may be one of the less risky investments you could make.


for more information about software escrow , go to www.ypguideservices.com.

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