Photo Scanner: Escrow Agreement

Escrow Agreement

Source code escrow is the deposit of the source code of software with a third party escrow agent. Escrow is typically requested by a party licensing software (the licensee), to ensure maintenance of the software. The software source code is released to the licensee if the licensor files for bankruptcy or otherwise fails to maintain and update the software as promised in the software license agreement. Escrow agreements: Source code escrow takes place in a contractual relationship, formalized in a source code escrow agreement, between at least three parties: one or several licensors, one or several licensees, the escrow agent. The service provided by the escrow agent – generally a business dedicated to that purpose and independent from either party – consists principally in taking custody of the source code from the licencor and releasing it to the licensee only if the conditions specified in the escrow agreement are met. Source code escrow agreements provide for the following: They specify the subject and scope of the escrow. This is generally the source code of a specific software, accompanied by everything that the licensee requires to independently maintain the software, such as documentation, software tools or specialized hardware. They oblige the licensor to put updated versions of the software in escrow in specific intervals.