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Software escrow refers to the safe keeping of software source-code (programming language) by a third party escrow agent. The process is typically used to protect a party that has licensed use of software in order to guarantee that party's ability to continue using the software in the event the owner of that software files for bankruptcy or fails to live up to agreed maintenance and upkeep of the software.
Software escrow is generally used to protect and guarantee critical systems used by a business. For example, a website design firm might enter into an agreement with a software development firm for a unique software feature that will give their clients advantages over those of other design firms. As long as the website design firm can use the product developed by the software development firm, the design firm's clients have stronger and more robust websites than their competitors do.
So what happens if the software development company goes out of business, sells the product to another party, or fails to maintain and upgrade the product? The website design company could lose access to a critical system it has built its business around. Software escrow services are there to prevent interruptions in service.
Lawdit serves clients all around the world. No matter where you are located, Lawdit's team of escrow lawyers and solicitors can assist and advise your company. Call or contact us from anywhere internationally. We are here to help.
The software licensor or owner generally retains and pays for software escrow. This is because they often have more than one licensee requesting software escrow as part of a usage contract (license). Using the same software escrow agent saves a lot of money by streamlining contract negotiations and record keeping.
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