WAYS OF PROTECT YOUR CUSTOM SOFTWARE ASSETS USING SOURCE CODE ESCROW.
Source code escrow offers a sort of assurance to organizations who buy bespoke programming arrangements from programming designers. A custom software is a critical mission to companies and if the buyer are unable to continue maintaining and supporting the software as a result of bankruptcy, it can cause a major problem to the licensee. One conceivable arrangement would be for the licensee to approach the breakthrough source code. It is good to note that most of thesoftware companieswill not agree to this because the source code is their intellectual property and they will be willing to give it to the license.
At this point you can introduce the source code escrow. If there is a conflict of interest in the company source code escrow is the best solution. A third party person is used as the escrow code agent and the code is released to the licensee when the buyer is unable to continue providing support and maintenanceas per the agreement of the contractual source escrow code agreement. It is worth noting that the software escrow agent is typically a company specializing in the source code service and it should completely independent for both the licensor and the licensee. The typical provisions of a source escrow agreement include the following.
The first thing we will look at is the provision of source code escrow is a definition of scope and the subject of the escrow, mainly this includes the source code of a specific software solution and anything that would be required to maintain the software independently such as documentation and software tools.
Secondly, The conditions that must be met for the escrow operator to discharge the source code to the licensee as per chapter 11 of the product merchant or cancellation of the improvement extend.
Another thing that should be considered are the specification of the rights that of the licensee when it comes to the source code after the software is released, for instance, the right to modify the code to fix bugs.
It is important that you consider is the determination of administrations the escrow operator gives past straightforward guardianship of the product, the specialist may, for example, manufacture the product and watch that the paired matches the adaptation provided to the licensee.
Any charges because of the specialist for givingescrow administrations. In case of insolvency with respect to the product engineer, the designer’s banks might be legitimately qualified for grab all benefits, incorporating source code retained, and this could avoid (or delay) the arrival of the product to the licensee.