Software escrow is an exclusive service that is offered by the escrow agent to the licensor and licensee of the software.
In the software escrow the licensor has to deposit the source code of the software to the third part i.e. escrow agent. Actually, the requirements of different companies are different that’s why each company want a software according to specific requirements of its operation that is known as customized software.
The source code of customized escrow software is not an open source code as it is very confidential not available for general public, due to this reason the licensor is hesitate to deposit it to a third party but on the special demand of escrow software the licensor has to put it down to escrow agent.
An Escrow agreement creates contractual connections between three parties; for example it includes one or several licensors, one or several licensees and escrow agent. The escrow agent generally offer the service of escrow software by taking the software‘s source code from the licensor and in case of bankruptcy or noncompliance of terms and condition of escrow agreement by the licensor will liable to handover it to licensee.
There is large number of escrow agents that are offering the service for escrow software. One thing that is really matter in the selection of best escrow agent is the security of source code that is given by the licensor to escrow agent. Before signing an escrow agreement there is immense need to collect all kind of facts and information regarding escrow agent and then to verify it.