You may be familiar with the term escrow, knowing that it protects two parties by using a third, a trusted escrow agent, so it will hardly surprise you to learn that software escrow is a means of protecting both the developer and the licensee of big ticket software. It has not always been possible to use escrow for software, but then there hasn’t always been software, but not many are aware of its availability.

For software developers, using software escrow is a way to reassure a buyer, since if you default on the agreement, the software source code will be given by the escrow agent or service to the buyer or licensee of your software. This only occurs when you trigger certain events documented in the escrow agreement, like not maintaining the software, but it reassures the purchaser having this documented for expensive software. If you look at escrow through their eyes, you need some sort of reassurance that, after a certain number of years, you or your company will still be around maintaining the software you are using, otherwise they may have to throw your software out and start all over with a different company. This is hugely time consuming, and expensive, so it is understandable that the purchaser of pricey software requests that software escrow be in place before they consider buying it. Then they know that if something happens, perhaps your company goes bankrupt, then in the worst case scenario they will still have the source code of the software to work with.

Naturally there are many software escrow agreements out there, but most can be easily adapted to suit your particular needs. If you are the seller of computer software that is pakaged, then you are more likely to want a multi user plan, rather than the single user plan that is in use for companies who purchase highly specialized and customized software, that is extremely unlikely to ever be sold to anyone else. Software escrow services can provide you with these documents, which you can adjust to suit your particular requirements.

Before choosing a software escrow service to use, remember to do a thorough check, making sure that the company has a good reputation, that there is no negative feedback concerning them on the internet, and do a Better Business Bureau too to see if there have been any conscerns recorded there.

Confirm that they have been around for a time offering escrow services, and of course, ask for the pricing for their escrow service. Once you have some comparisons, go with the company that you feel most suits your needs, and then adjust the escrow agreement so that it reflects your needs. Of course, the party you are dealing with may also wish to make some changes, so check with the escrow company to see if they will charge you for these updates. {It is useful to know this in advance.Knowing in advance what your fees are liable to be is very valuable}.

Then, having decided on your escrow service, you can get your software escrow agreement finalised and set in motion, and all three parties will be satisfied with the escrow agreement.