Source-Code Escrow Agreement

Just realised today (thanks to John P., from Beat That Quote Ltd), that we did need a Source-Code Escrow agreement to be able to sell effectively out applications.

What is it?
the escrow nature of the source code escrow agreement requires there to be a third party, an escrow agent, who will hold the source code in trust for the parties, to be released in accordance with the terms of the agreement. If Jazar disappears, our clients whose business depend heavily upon our application have then access to the code.

What are the conditions
The most common examples, other than the programmer's going out of business or other unjustified disappearance, are failures to repair or make required modifications to the software within a certain period of time after notice; the programmer's ceasing to further develop or support the software in general; failing to enter into a maintenance agreement concerning the software, and similar contingencies.

Why should a software vendor place source code in Escrow?

Placing source code in Escrow proves to the Licensee that the vendor has confidence in his business, his software and his ability to supply and maintain that software in the future.

Having an Escrow Agreement in place adds value to the software because it offers extra security to the Licensee and shows that the vendor values the business of his customer.By placing the source code in Escrow, the software vendor is demonstrating conformance to the IT industry's code of best practice.

Placing source code in Escrow proves to the Licensee that the vendor has confidence in his business, his software and his ability to supply and maintain that software in the future.

Having an Escrow Agreement in place adds value to the software because it offers extra security to the Licensee and shows that the vendor values the business of his customer. By placing the source code in Escrow, the software vendor is demonstrating conformance to the IT industry's code of best practice.

Mopre information: http://www.nccgroup.com/downloads/downloads.aspx?CategoryID=14