Escrow for technology

Escrow for technology focuses on safeguarding the knowledge applied by supplier in its product. Consider the embedded software or firmware, construction drawings and blueprints, recipes or formulas, Bill of Materials and suppliers. It usually involves a combination of the aforementioned components. The technology escrow arrangement guarantees the user business continuity while protecting the supplier’s intellectual property.

Technologie Escrow

Intellectual property

There are often specific components underlying technological products, such as:

  • Formulas;
  • Blueprints;
  • Technical drawings;
  • Recipes;
  • Patents
  • Embedded software for controlling machines.

(Knowledge) suppliers rarely simply transfer that knowledge to customers. Understandable, since it is intellectual property and the source of the product. That often includes years of expertise and research.

What is escrow for technology?

A technology escrow arrangement is an arrangement between the supplier and its customer with the aim of securing all the necessary knowledge (know-how) to ensure continuity on the use of the delivered product. After all, without this knowledge, the product cannot be continued or produced.

  • The parties agree on the circumstances under which the deposit and thus the knowledge will become available to the supplier’s customer. Consider situations where the supplier can no longer fulfill (delivery) agreements, such as bankruptcy.
  • The agreements ensure that in those cases, the customer is provided with the knowledge and rights to use that knowledge for their own business continuity.

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