When you talk about escrow it basically refers to an agreement which involves a third party who will hold the properties and assets in behalf of the transacting parties. The escrow agent can possibly hold money, intellectual property, or documents. All the valuable items are protected by the agent until certain instructions are given by the two parties. A software is believed to be in escrow if the source code of a particular file is protected by a third party or the escrow agent. The agency that has plans in using the software can as the agents to keep the software. Software escrow services is a kind of protection given to both parties that is involve in a software licensee.
Makers of different programs write their own source code for their creation. Source codes are important in the world of programming, if these codes are not protected then one can just obtain them and install the whole program in their respective device. For those who have some knowledge in software executable source code will be able to devise an application they can call their own. If there is any breach of contract that the software developers made like bankruptcy and inability to update their software then it is possible for clients to gain access with the source code of their software through the escrow agent.
It is already a known fact that some people nowadays take advantage of other people. Oftentimes, the transaction involve significant amount of money. Since there is now an involvement of software and source code in an escrow contract, buyers of software can be assured that they are safe from those individuals who might lure them. If you want to be safe whenever you purchase software to a particular developer then you must keep in mind and apply this so called escrow agreement, this way you can avoid scams.
It is vital for software developers to enter in this kind of agreement for this will not just benefits their clients but to the as well. It is a prevailing fact that developing one’s program and software could be time consuming; this might even go for months and even years at the same time pricey. This is the right time to have a software escrow agent that will serve as the mediator of the whole transaction of the two parties, what they will do is setup the whole contract and let the two parties understand everything that they need to know. If by any chance any of the two parties violated any rule or part of the agreement then the escrow agent has every right to perform necessary actions as mandated in the contract or agreement that they have formulated.