Database Escrow Definition
Database escrow is where a database developer deposits the code that makes up a computer database with an escrow agent, in accordance with an escrow agreement. A database escrow agreement will usually state that this code will pass to the business that commissioned its creation, should the developer be unable or unwilling to meet its contractual obligations.
Advantages of Database Escrow
Investing in a database is a large investment for a business which it will naturally want to protect. It will want to ensure that its investment will not evaporate overnight, either by the developer neglecting its contractual obligations or becoming subject to liquidation/bankruptcy proceedings. Database escrow alleviates these concerns and offers a business security and peace of mind in respect of its investment in a database.
A developer, on the other hand, will have invested considerable time and effort in the creation of source code that makes up a database and will often want to use parts of it in other projects, so as to minimise the amount of time and effort it needs to expend in the future. Database escrow acts as a strong motivating force for it to abide by the terms of a contract by securing its ability to use parts of the code in other projects.
Database Escrow Agreements
The terms of a database escrow agreement will usually stipulate that any instruction manuals, guides and related materials be placed into escrow, together with the code. The agreement will also set out the specific events triggering release, in addition to dealing with updated versions of the code, the form in which it will be received by the escrow agent and the manner in which it will be held.
The developer will usually pay the escrow costs because it will often have more than one client requesting database escrow. Using the same agent to escrow a database will save the developer time and money by streamlining both contract negotiations and administrative burdens.
Lawdit's Database Escrow Services
Lawdit acts for clients around the world in relation to database escrow services and our team of escrow agents and solicitors are always on hand to assist and advise you. We offer a free call back service and are happy to discuss your particular needs, concerns and goals. Call or contact us today if you are looking to escrow a database and we'll be pleased to talk you through your options.
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