Escrow for software

Escrow for software secures the use of software. Software consists of several essential components, such as source code, data and operating systems. Without those components, you cannot modify and maintain the software, and important data can be lost. With escrow for software, you arrange to preserve the software application and prevent users’ business continuity from being compromised.

Software Escrow

The components of escrow for software

Software is the set of computer programs, applications and operating systems, often with associated data-often written in programming languages such as Phyton, C, Java++ and Visual Basic, for example. Users of a software application usually do not have all those components. The source code remains the property of the software vendor anyway.

What is escrow for software?

So software is more than just the source code. The major difference with a source code escrow arrangement, therefore, is that a software escrow arrangement does not focus solely on securing the source code, but is more comprehensive. For example, the entire application can be deposited as a virtual machine or data or essential components.

A software escrow arrangement is an agreement between the user(s) and the supplier of the software.

  • The agreement lays down agreements on the circumstances in which the software components will be made available to the user, such as situations in which the supplier can no longer fulfill (maintenance) agreements, for example in the event of bankruptcy.
  • These agreements establish that the software user will have access to the software components and the rights to use them for their own business continuity. 
  • It can also define how the software application will be retained, continued and maintained.

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