Chester, United Kingdom (PressExposure) November 17, 2009 -- As a trusted advisor, NCC Group supports over 45,000 customers worldwide, to maximize the return on their information technology investments while managing the associated risks. NCC Group works with industry leaders, including 92 out of the Fortune 100, as well as up and coming entrepreneurs.
Escrow is a straightforward process where an independent provider holds a copy of the intellectual property underlying these assets.
A Software Escrow Agreement is a contract between three parties - the software developer (the Licensor or Developer), the user (the Licensee or User) and an independent neutral third party Escrow Agent. Under the terms of the agreement, the Licensor agrees to place a copy of the source code with the Escrow Agent and the Escrow Agent agrees to hold the source code securely. The Escrow Agent is empowered to release the escrow deposit to the licensee only in the event of certain predefined events. These events typically include the insolvency of the licensor or its failure to provide support and/or maintenance services as defined in the license agreement.
In most escrow agreements, the Licensor has the right to dispute the occurrence of a release event, or claim that it has been corrected to the Licensee's satisfaction. An escrow solution should provide both the Licensor and Licensee with the assurance that the value of the partnership shall be realized by both parties, regardless of circumstances that may arise in the future. The escrow solution will build a stronger partnership between the Licensor and Licensee due to the mutual trust and understanding delivered by the security of an escrow arrangement. The escrow agreement facilitates an expedient and comprehensive release of tangibly defined and packaged IP assets.
Software escrow application code can take one of two forms: object code or source code. Object code is in a form that a computer can process transactions, typically in binary or some other format not readily intelligible to humans. Source code is known as software escrow which is essential for any kind of organization to protect their asset