The Rise of Source Code Leaks

The landscape of cybersecurity is continuously evolving, and source code leaks have emerged as a significant concern for businesses and software developers alike. These leaks can lead to a range of consequences, from intellectual property theft to the exploitation of vulnerabilities by malicious actors. This article, inspired by The Hacker News' recent piece, explores the implications of source code leaks and discusses the role of source code escrow in protecting mission-critical source code.

The Complex World of Software Licensing

In today's digital landscape, businesses are increasingly reliant on software applications to manage their operations, improve productivity, and stay competitive. With the rapid adoption of cloud computing and the ever-changing nature of software licensing, end-users face a multitude of challenges. This article will explore current obstacles in software licensing and discuss how software escrow can provide a reliable solution when a software licensor is unable to support their clients.

Artificial Intelligence Shaping Phishing Attacks

In an eye-opening report, it was revealed that OpenAI's ChatGPT has the ability to craft seemingly legitimate phishing emails with ease. While AI's potential for innovation is unquestionable, this discovery highlights the need for increased cybersecurity and secure software development practices in the face of advanced threats. One such security measure is software escrow, which can help protect companies and users from potential data breaches and service disruptions.

As businesses increasingly rely on cloud-based services and Software as a Service (SaaS) applications, the risks and vulnerabilities associated with cloud-based identity management have come to the forefront. Here, we will explore how SaaS escrow can help mitigate the risks of losing access to business-critical SaaS applications and protect your organization from the perils of cloud-based identity management.

Ransomware attacks have become a significant threat to businesses worldwide, as cybercriminals continue to exploit vulnerabilities in organizations' digital infrastructures. A recent report by NordLocker has unveiled the tactics and strategies of a prolific ransomware group dubbed the "Royal Ransomware Group”, a group that has launched 26 attacks in March alone.

The rapid digitization of businesses and industries worldwide has made the protection of digital assets, networks, and domains more important than ever. The Network and Domain Protection Software Market has been growing rapidly to cater to the ever-evolving demands of the digital world. Alongside the adoption of network and domain protection software, another critical aspect that businesses should consider is hosting escrow. 

A Comprehensive Overview of Evolving Intellectual Property Escrow Practices

 

Exploring the Industries and Companies Where Software Escrow Can Make a Difference

 

Key Factors to Evaluate When Choosing a Software Escrow Service

 

The SaaS (Software as a Service) industry has been growing exponentially in recent years, with more and more businesses relying on cloud-based applications for their daily operations. With this increased dependence on cloud software, there is an equally heightened need for reliable and secure SaaS escrow services. A recent press release from MarketWatch highlights the expanding worldwide business opportunities in the SaaS escrow services market, forecasting significant growth in the sector by 2023. As a leader in this industry, we are well-equipped to provide comprehensive and robust escrow services to businesses worldwide.

In recent years, the Software as a Service (SaaS) market has experienced tremendous growth due to its flexible and scalable nature, which offers businesses an efficient way to access software applications. As the reliance on SaaS continues to grow, so too does the need for SaaS escrow services to protect both vendors and customers in case of unforeseen disruptions. A recent report on OpenPR highlights the upcoming opportunities in the SaaS escrow services market, discussing the business insights and trends shaping the industry. In this article, we will examine the growth of SaaS escrow services, their benefits, and the challenges facing the industry.

In the fast-paced world of e-commerce, the success of a business often relies on the seamless operation of software services. Software as a Service (SaaS) has become an essential component of many e-commerce businesses, allowing them to remain agile, scalable, and efficient. However, relying heavily on third-party SaaS providers can pose risks if these services become unavailable. This is where SaaS escrow comes into play, providing a safety net to ensure business continuity. In this article, we will delve into the importance of SaaS escrow for e-commerce businesses and how it can safeguard their operations.

Software escrow is a legal arrangement designed to protect both software vendors and end-users in case of unforeseen circumstances. When a release condition is triggered, the escrow agent (Codekeeper) is responsible for ensuring that the end-user receives access to the software's source code and related materials. This process can seem complex and daunting, but understanding its key components can help demystify it. 

In today's technology-driven world, businesses are increasingly relying on third-party software to power their operations. While this offers numerous advantages, it also exposes them to potential risks, particularly in regulated industries such as healthcare, finance, and energy. 

Software escrow is a widely used practice that safeguards the intellectual property of software developers while ensuring the rights and interests of software users. In a software escrow arrangement, a neutral third-party (the escrow agent like Codekeeper) holds the source code and related materials, releasing them under predefined conditions. To ensure that the escrow process is effective and beneficial for all parties, it is essential to properly prepare your source code for escrow. In this article, we will provide a step-by-step guide to help you prepare your source code for software escrow.

Startups and early-stage companies are known for their innovation, disruption, and rapid growth. As they develop new technologies, products, or services, intellectual property (IP) becomes a critical asset for these companies. Intellectual property, including patents, trademarks, copyrights, and trade secrets, often forms the backbone of a startup's competitive advantage. To safeguard these valuable assets, it is crucial for startups to invest in IP escrow. 

In today's competitive business environment, safeguarding software source code and ensuring uninterrupted access to mission-critical applications is vital. As a leading software escrow provider, we offer a range of multi-tiered escrow solutions tailored to the needs of businesses of varying sizes and industries. With our flexible pricing structure and comprehensive suite of services, we cater to the unique requirements of each organization, providing a secure and reliable platform for software escrow management.

In today's digital age, businesses rely on software applications to perform a wide range of tasks, from managing inventory to processing financial transactions. This dependence on technology has increased the need for robust cybersecurity measures to safeguard sensitive data and maintain operational continuity. Software escrow, a lesser-known but increasingly important aspect of cybersecurity, plays a critical role in securing business interests. 

Software escrow is a risk management strategy designed to protect the interests of both software vendors and their customers. By depositing the source code and other essential materials with a neutral third-party agent like Codekeeper, software escrow ensures that these assets remain accessible in predefined circumstances, such as the vendor's insolvency or a breach of contract. The escrow agent plays a critical role in the success of a software escrow arrangement. In this article, we will delve into the various responsibilities of an escrow agent and the importance of selecting a reputable and experienced provider for your software escrow needs.

Software escrow is a risk management tool that involves depositing a software application's source code, documentation, and other essential materials with a neutral third-party agent. This arrangement protects the interests of the licensee, ensuring that the software assets remain accessible under predefined circumstances, such as the software vendor's insolvency, discontinuation of support, or breach of contract. One of the critical aspects of a software escrow agreement is the release conditions. In this article, we'll provide a practical guide to navigating software escrow release conditions, helping you understand their importance and how to establish them effectively.

The growing concern in the world of cybersecurity: the LockBit gang is now targeting Mac users with new ransomware. As the popularity of Mac devices continues to grow in the business world, companies must take proactive measures to protect their software assets and ensure business continuity. One such measure is implementing source code escrow. In this article, we'll explore the benefits of source code escrow for companies relying exclusively on Macs, particularly in the context of the rising ransomware threats.

Recently, the popular open-source media center software Kodi confirmed a significant data breach affecting more than 400,000 users. This incident highlights the importance of cybersecurity and risk management in the modern digital landscape. In this article, we will explore how source code escrow could have played a role in mitigating the impact of the data breach and ensuring business continuity for users and developers alike.

Software escrow services provide a valuable layer of protection for businesses that rely on third-party software applications. By depositing the source code and other essential materials with a neutral third-party agent, software escrow ensures that these assets remain accessible in predefined circumstances, such as the vendor's insolvency or a breach of contract. Before entering into a software escrow agreement, it's important to ask key questions to ensure that the arrangement meets your organization's unique needs and requirements. 

Mergers and acquisitions (M&A) are crucial events in the corporate world, where companies join forces or change hands to create new opportunities, streamline operations, or gain a competitive advantage. With technology playing an increasingly significant role in today's businesses, software and intellectual property have become essential assets in M&A transactions. Software escrow services have emerged as a valuable tool in ensuring the protection and smooth transfer of these assets during the M&A process. This article explores the role of software escrow in mergers and acquisitions, its benefits, and best practices for implementation.

2023 started with a series of high-profile data breaches that exposed sensitive information of millions of users, compromising their privacy and security. Data breaches is nothing new, but the concerning reality is that these incidents are increasing year-on-year with an ever increasing impact on data security, financial loss, and the privacy of millions of individuals around the world. Here are the top 3 notable data breaches of 2023 so far:

Source code verification is an essential aspect of software escrow that contributes to the overall security, stability, and legal compliance of software applications. By adhering to best practices and understanding the importance of this process, both software vendors and licensees can benefit from enhanced risk mitigation and build long-lasting business relationships founded on trust and transparency.

As software continues to play an increasingly vital role in various industries, businesses are becoming more aware of the risks associated with their software applications. One of the most significant risks is the possibility of the software vendor going out of business, leaving their customers without access to the software that they have come to rely on. To mitigate these risks, software escrow has emerged as a valuable solution.

 

Software escrow is a legal arrangement in which a neutral third-party escrow agent like Codekeeper holds the source code, documentation, and other materials related to a software application on behalf of the software vendor and their customers. We are responsible for ensuring that the materials are maintained and updated regularly, and that they can be released to the customer under specific conditions, such as the software vendor's bankruptcy or the vendor's failure to maintain and support the software.

 

There are three main types of software escrow: software escrow, source code escrow, and SaaS escrow. Each type of escrow serves a different purpose and offers different benefits to software vendors and their customers.

 

Software Escrow
Software escrow is a type of escrow in which Codekeeper holds a copy of the software application, along with the documentation and other materials needed to install and run the software. This type of escrow is most commonly used for off-the-shelf software applications that are purchased by businesses and other organizations.

When a business or organization purchases software, they typically rely on the vendor to provide ongoing support and maintenance for the software. However, if the vendor goes out of business or is unable to provide support, the business may be left without access to the software they have purchased. With software escrow, the business can ensure that they have access to the software they need, even if the vendor is no longer able to provide it.

 

Millions of users of Mailchimp, a renowned email marketing platform, were affected by a data breach on January 18th, 2023. Sensitive information, including names, email addresses, and other personal data, was compromised. Mailchimp, however, has pledged to secure the platform and prevent similar attacks. Nevertheless, this event raises concerns about the security of Software as a Service (SaaS) products and the advantages of SaaS escrow.

Millions of users of Mailchimp, a renowned email marketing platform, were affected by a data breach on January 18th, 2023. Sensitive information, including names, email addresses, and other personal data, was compromised. Mailchimp, however, has pledged to secure the platform and prevent similar attacks. Nevertheless, this event raises concerns about the security of Software as a Service (SaaS) products and the advantages of SaaS escrow.

 

SaaS escrow is a service that safeguards both SaaS providers and their customers by granting access to the source code, data, and other crucial assets if a catastrophic failure occurs. Such failures may include a security breach, financial instability, or bankruptcy. The service acts as an intermediary between the provider and its customers, storing the provider's code and data in a secure place and releasing it to customers only in specific circumstances.

 

In the case of Mailchimp, SaaS escrow could have been an invaluable tool for both the provider and its customers. It, for example, could have provided a safety net for Mailchimp in the event of this security breach following a previous breach that took place in 2022. Mailchimp's customers could have been assured that their data and other critical assets would remain secure even if the provider experienced a breach or other failure.

 

In today's technology-driven world, businesses depend on software applications for their daily operations, and the reliability of these applications is critical. To mitigate risks associated with software unavailability or the inability of the software provider to support the application, companies can turn to software escrow agreements. This article will delve into the key components of a software escrow agreement, highlighting the aspects that ensure a successful and secure arrangement.

 

What is a Software Escrow Agreement?

A software escrow agreement is a legally binding contract involving three parties: the software developer (licensor), the end user (licensee), and a neutral third-party escrow agent (Codekeeper). This agreement outlines the conditions under which the escrow agent releases the source code and other vital materials to the licensee, usually when the licensor is unable or unwilling to fulfill their obligations, such as providing maintenance, support, or updates.

 

Key Components of a Software Escrow Agreement

• Definition of Release Conditions

Release conditions are a crucial element of a software escrow agreement, as they outline the specific circumstances under which the escrow agent can release the source code and other materials to the licensee. Common release conditions include:

1. The licensor's bankruptcy or insolvency
2. The licensor's cessation of business operations
3. The licensor's failure to provide adequate support, maintenance, or updates

It is essential to clearly define these conditions in the agreement to avoid ambiguity and ensure a smooth release process when necessary.

 

Deposit Materials

The agreement should explicitly specify the materials to be deposited into the escrow account. These materials include:

1. The source code
2. Documentation
3. Build instructions
4. Test data and scripts
5. Application programming interfaces (APIs)
6. Any other components required for the licensee to maintain and support the software

It is crucial that the licensor regularly updates these materials to guarantee their relevance and usefulness in case of a release.

 

Verification and Testing

To ensure the accuracy, completeness, and functionality of the deposited materials, Codekeeper offers different verification service options to suit your specific needs. You can have a look at our different verification options here. The verification process typically involves:

1. Reviewing the materials for completeness
2. Confirming the materials' compatibility with the licensee's systems
3. Assessing the materials' functionality according to the specifications

Verification and testing should be conducted periodically, as well as upon the licensee's request or when significant changes are made to the software.

 

Escrow Agent Selection

Choosing a reputable and experienced escrow agent is critical to the success of the software escrow agreement. The agent's primary responsibilities include:

1. Safeguarding and storing the deposited materials
2. Verifying and testing the materials, if required
3. Releasing the materials to the licensee as per the agreement's conditions
4. Ensuring compliance with the agreement's terms by all parties

It is essential to select an escrow agent with a strong track record in managing software escrow accounts and a comprehensive understanding of the legal and technical aspects involved. Codekeeper has been providing expert software escrow services to thousands of well-known brands and companies around the world for the last decade. Our track record speaks for itself.

 

Apple Inc., the tech giant known for its innovative gadgets and cutting-edge technology, has recently found itself in the midst of a patent infringement dispute over its Apple Watch. The issue stems from the watch's electrocardiogram (EKG) feature, which has been accused of violating patents held by AliveCor, a medical device company. As the battle unfolds, it becomes increasingly clear that intellectual property (IP) escrow could have played a pivotal role in preventing such a situation from arising.

 

Background

The EKG feature has been one of the key selling points of the Apple Watch since its introduction in 2018. It allows users to monitor their heart health by recording an EKG reading directly from their wrist. The feature has been hailed as a game-changer in the wearable tech industry, enabling users to detect irregular heart rhythms and other potential health issues in real time.

 

AliveCor, on the other hand, has been producing EKG-enabled devices since 2011, with its KardiaMobile and KardiaBand products. The company claims that Apple's EKG feature infringes on its patents and sued the tech giant for damages and an injunction to halt the sale of Apple Watches with the EKG feature.

 

The Role of IP Escrow

In such high-stakes patent disputes, where innovative ideas are at the heart of the matter, IP escrow can be a powerful solution to avoid litigation and protect the interests of all parties involved. IP escrow is a legal agreement in which a neutral third party, known as the escrow agent, holds the intellectual property assets (e.g., patents, copyrights, trade secrets) on behalf of the parties involved until specific conditions are met.

 

In the context of the Apple Watch and AliveCor dispute, IP escrow could have provided an additional layer of protection and minimized the risk of patent infringement claims. For example, if Apple and AliveCor had entered into an IP escrow agreement prior to the development of the Apple Watch's EKG feature, it could have ensured that both parties were aware of each other's patents and innovations. This would have provided an opportunity for collaboration or licensing arrangements, thereby avoiding costly and time-consuming legal battles.

 

Software escrow services are essential for businesses and organizations that rely heavily on mission-critical software and sensitive intellectual property. At Codekeeper, we have seen a significant increase in demand for software escrow services as a result of these industries realizing that risk mitigation and a robust business continuity plan are more important now than ever before. Here are just some of the industries that can benefit from software escrow.

 

Financial Services

Banks, insurance companies, and other financial institutions depend on proprietary software to manage transactions, customer data, and risk assessment. To ensure business continuity and minimize downtime in case of vendor failure, these organizations require software escrow services. Such services provide a safety net, ensuring that essential software remains accessible and operational even if the original vendor becomes unavailable.

 

Healthcare

Hospitals, clinics, and other healthcare providers utilize specialized software for patient management, electronic health records, and medical billing. These vital systems must remain accessible and functional at all times. Software escrow guarantees continued access to these systems in case the software vendor becomes unavailable, ensuring the smooth operation of healthcare services.

 

Government

Government agencies rely on custom software for public services, security, and administration. Software escrow is essential for maintaining these services and complying with legal requirements for data protection and software license agreements. With the help of escrow services, governments can maintain stability and continuity in their operations.

 

In the age of digital transformation, businesses are increasingly turning to Software-as-a-Service (SaaS) solutions to streamline their operations, improve efficiency, and reduce costs. With the growing reliance on SaaS applications, it is crucial for organizations to ensure the continuity and security of these services. One effective way to achieve this is through SaaS escrow, a specialized form of software escrow tailored to the unique requirements of SaaS applications. In this article, we will explore the importance of SaaS escrow and provide a step-by-step guide on how to protect your business continuity using this innovative service.

 

Understanding SaaS Escrow

SaaS escrow is just one of the many software escrow services that Codekeeper offers. SaaS escrow safeguards the source code, data, and other essential components of SaaS applications, ensuring that organizations have continuous access to these vital resources even in the event of a supplier issue. By depositing these assets with a neutral third-party escrow agent, such as Codekeeper, businesses can protect themselves from unforeseen disruptions and maintain the continuity of their operations.

 

Some examples of the most well-known SaaS applications include Salesforce, Hubspot, Mailchimp, Microsoft 365, Adobe Creative Cloud, Zoom, etc. 

 

How to Protect Your Business Continuity Using SaaS Escrow

1. Assess Your Risks: Begin by evaluating your organization's dependency on SaaS applications and identify potential risks, such as supplier bankruptcy, service disruptions, or data loss. This assessment will help you prioritize the applications that require SaaS escrow protection.
2. Select a Reputable Escrow Agent: Partner with a trusted and experienced escrow agent, like Codekeeper, to ensure that your SaaS assets are securely stored and managed. 

 

In today's technology-driven business environment, the reliance on software applications for the smooth running of operations is undeniable. As companies rely more on software, the need for business continuity planning and software escrow services have become increasingly important. This article delves into the importance of business continuity planning and the integral role of software escrow services in ensuring the uninterrupted operation of businesses.

 

The Importance of Business Continuity Planning

Business continuity planning (BCP) is a proactive approach that organizations implement to ensure their ability to recover from unexpected events, such as natural disasters, cyber-attacks, or system failures. The primary goal of BCP is to minimize disruptions to operations, protect against revenue loss, protect essential data and resources, and maintain the organization's reputation.

 

Software Escrow: A Vital Component of BCP

As businesses become more reliant on software applications, the need for safeguarding software assets has become paramount. Software escrow services have emerged as an essential component of BCP, ensuring that businesses can continue to access and use their software applications, even in the event of supplier issues.

 

Software escrow involves depositing the source code and other relevant documentation of a software application with a neutral third party or software escrow agent like Codekeeper. In the event of a triggering event, such as bankruptcy, the failure to meet service level agreements, or the discontinuation of support, we release the source code to the licensee, ensuring uninterrupted access to the software.

 

The increasing reliance on technology and software applications in today's business landscape makes it essential for organizations to safeguard their investments and ensure the continuity of their critical software systems. Escrow agreements provide a secure framework to protect the interests of software vendors and their clients in the event of unforeseen circumstances. While software escrow and source code escrow might seem similar, it is crucial to understand the differences between the two to make an informed decision that best suits your business needs. This article will delve into the key distinctions between software escrow and source code escrow and guide you in selecting the most suitable option for your organization.

 

Software Escrow: A Broader Scope

Software escrow is a comprehensive arrangement that involves the deposit of the complete software application package with a neutral third-party escrow agent like Codekeeper. This package includes not only the source code but also other essential components such as executable files, libraries, documentation, build instructions and any other materials required for the software's effective use, maintenance, and support. By having a complete software package in escrow, the licensee can ensure the software's uninterrupted functionality in case the vendor is unable or unwilling to provide support.

 

Source Code Escrow: A Narrower Focus

Source code escrow, as the name suggests, specifically focuses on the deposit of the software's source code with an escrow agent. The source code is the human-readable programming code that developers use to create the software application. While source code escrow provides the licensee with access to the source code in the event of release conditions being met, it does not necessarily include other materials such as documentation, executable files, or libraries.

 

In today's interconnected digital landscape, organizations increasingly rely on third-party software components and services to enhance their operations and deliver cutting-edge products. While these third-party dependencies offer numerous benefits, such as cost savings and faster development cycles, they can also introduce potential risks and vulnerabilities. In this article, we will explore the challenges associated with third-party dependencies and discuss strategies for managing and mitigating these risks to ensure business continuity and stability.

 

The Challenges of Third-Party Dependencies

1. Loss of control: Relying on third-party software and services can result in a loss of control over critical aspects of your business, such as data security, software maintenance, and updates.
2. Vendor lock-in: Organizations may become dependent on a specific vendor's technology, making it challenging to switch to alternative solutions without incurring significant costs and disruptions.
3. Supplier issues: The financial or operational stability of third-party suppliers may be uncertain, which could lead to service disruptions, discontinued support, or even bankruptcy.
4. Compatibility and integration issues: Integrating third-party components with existing systems and applications can be complex, leading to potential compatibility issues and increased maintenance efforts.

Setting up a source code escrow account with Codekeeper is a straightforward process that can provide peace of mind for both software vendors and their clients. By using Codekeeper's software escrow services, you can ensure that critical information is stored securely and released in the event of an unexpected situation.

Software escrow is a service that provides storage and release of source code and other critical information for software products with a neutral third party like Codekeeper. In the event of an unexpected situation, such as a software vendor going out of business or failing to provide support, software escrow can be a valuable tool for ensuring business continuity and minimizing risk.

 

There are many benefits of software escrow for both software vendors and their clients. In this article, we will discuss some of the key benefits of software escrow and how it can help organizations like yours protect their investments in software products.

 

Business Continuity

One of the most significant benefits of software escrow is business continuity. If a software vendor goes out of business or fails to provide support for their software product, clients who have invested in that software may be left without access to critical source code and other information needed to maintain and support the software.

With software escrow, clients can ensure that they have access to critical information even if the software vendor is no longer available. This means that they can continue to use and support the software without interruption, minimizing the risk of business disruption and loss of revenue.

 

Risk Management

Software escrow is also an effective risk management tool. By storing critical information with a software escrow agent like Codekeeper, software vendors can reduce the risk of information loss or theft. This is particularly important in industries where intellectual property is a key asset, such as software development.

Clients who invest in software products also benefit from reduced risk through software escrow. By ensuring that they have access to critical information, clients can minimize the risk of software failure or data loss, which can have serious consequences for their business.

In today's digital age, security breaches and operational disruptions can have disastrous consequences for any business. From lost revenue to reputational damage, the impacts of such incidents can be long-lasting and far-reaching. Ensuring both security and operational resilience is therefore crucial for businesses of all sizes and industries. In this article, we will discuss some best practices for ensuring security and operational resilience in your organization.

 

Develop a Security and Resilience Strategy

A well-defined security and resilience strategy is the foundation of any successful program. Such a strategy should take into account the unique risks and challenges faced by your organization, as well as any relevant regulations or compliance requirements. Key components of a security and resilience strategy include:

Risk Assessment : Identify and assess the risks to your organization's security and operations. This can include internal and external threats, as well as vulnerabilities in your systems, processes, and personnel.
Incident Response Plan : Develop a plan for responding to security incidents and operational disruptions. This should include procedures for detecting, containing, and mitigating the impact of incidents, as well as for communicating with stakeholders.
Business Continuity Plan : Develop a plan for maintaining critical business operations in the event of a disruption. This should include procedures for backing up data and systems, as well as for restoring operations as quickly as possible. This can be achieved by way of investing in software escrow, for example.
Training and Awareness : Ensure that all employees are aware of the risks and procedures related to security and resilience. Regular training and awareness programs can help to reduce the risk of human error and improve incident response times.

 

Implement Strong Access Controls

Access controls are essential for protecting sensitive data and systems from unauthorized access. This includes both physical and digital access controls. Key considerations for implementing strong access controls include:

Role-Based Access : Assign access levels based on an individual's job responsibilities and need-to-know. This can help to limit the exposure of sensitive information to those who do not require access.
Multi-Factor Authentication : Use multiple authentication factors, such as passwords and biometric data, to increase the security of access controls. This can help to reduce the risk of unauthorized access due to lost or stolen credentials.
Regular Reviews : Conduct regular reviews of access controls to ensure that they remain appropriate for each individual's job responsibilities. This can help to prevent access creep, where individuals accumulate unnecessary access over time.

 

Use Encryption to Protect Data

Encryption is a key tool for protecting sensitive data from unauthorized access. It involves the conversion of data into a format that can only be read by those who have the appropriate decryption key. Key considerations for using encryption to protect data include:

Choosing the Right Algorithm : Select an encryption algorithm that is appropriate for the level of security required for each type of data. This can include symmetric and asymmetric encryption, as well as hashing algorithms for data integrity.
Key Management : Develop a key management strategy that ensures that encryption keys are properly secured and only accessible to authorized personnel. This can include using hardware security modules (HSMs) and key rotation policies.

End-to-End Encryption : Implement end-to-end encryption for all sensitive data in transit and at rest. This can help to prevent data breaches and unauthorized access to sensitive information. At Codekeeper, all the data you store with us is end-to-end encrypted for example.

The protection of digital assets is more critical than ever, and one way to ensure the security of your source code is by using software escrow services. In this article, we will discuss what software escrow is, why you need it, and how it works.

 

What is Software Escrow?

Software escrow is a legal agreement between three parties: the software owner or licensor, the end-user or licensee, and a third-party escrow agent like Codekeeper. The agreement states that the software owner deposits the source code and other critical materials with us as a neutral third party. In the event that the software owner is unable to support the software due to circumstances ranging from bankruptcy, acquisition, natural disasters, etc., the end user/beneficiary can access the deposited materials.

 

Why Do You Need Software Escrow?

As a software owner or licensor, you invest significant time and resources in developing your software. It goes without saying that the protection of your intellectual property is critical to your success. There are several reasons why you may need software escrow:

1. Protect Your Intellectual Property: When you deposit your source code with Codekeeper, you retain ownership of the intellectual property. This ensures that your source code remains secure and accessible in the event of unforeseen circumstances.
2. Reduce Risk: By using software escrow services, you can reduce the risk of your end-users experiencing downtime or other issues due to your inability to support the software. This can help you maintain customer loyalty and avoid legal disputes.
3. Increase Customer Confidence: Providing software escrow services to your end-users demonstrates your commitment to customer satisfaction and can help you win new business.
4. Comply with Regulations: In some industries, such as healthcare and finance, regulations require the use of software escrow services to protect patient and customer data. We provide GDPR and HIPAA compliance solutions.

As technology continues to advance, businesses rely more and more on software to operate effectively. However, as a business owner or developer, it's essential to ensure that your software and source code are protected and secure. An escrow agreement can help you accomplish this goal by providing a third-party custodian for your source code and ensuring that it remains accessible to you in the event of unforeseen circumstances. In this article, we'll outline how to create an effective escrow agreement to protect your source code and ensure compliance.

 

What is an Escrow Agreement?

An escrow agreement is a legal document that specifies the terms of the arrangement between a software developer or vendor and a third-party escrow agent such as Codekeeper. The agreement states that the developer or vendor will deposit the source code, as well as any other relevant materials, with us as the escrow agent. In exchange, we will hold the materials in trust and release them to the developer or vendor under certain agreed-upon circumstances.

 

Why is an Escrow Agreement Important?

An escrow agreement is important for several reasons. First, it protects the developer or vendor's intellectual property rights by ensuring that their source code is safe and secure. Second, it ensures that the source code is accessible to the developer or vendor in the event of unforeseen circumstances such as bankruptcy, acquisition, or discontinuation of the software. Third, it can help to ensure regulatory compliance, particularly in industries that are heavily regulated.

 

Steps to Create a Software Escrow Agreement

• Identify the Key Parties

The first step in creating a software escrow agreement is to identify the key parties involved. These parties include the software developer, the escrow agent, and the beneficiary.

The software developer is the party that owns the source code and other materials that will be deposited with the escrow agent. The escrow agent is the third-party custodian who will hold the materials in trust. The beneficiary is the party that will receive access to the materials under certain specified circumstances, such as the bankruptcy of the developer or vendor or the discontinuation of the software.

 

• Specify the Deposited Materials

The next step is to specify the materials that will be deposited with the escrow agent. This should include the source code, any accompanying documentation, and any other materials that are necessary for the software to function properly. The agreement should also specify how often the developer is required to update the deposited materials.

 

• Define the Release Conditions

The release conditions are the circumstances under which the beneficiary will be granted access to the deposited materials. Typically, the release conditions will be triggered by certain events such as bankruptcy, discontinuation of the software, or failure to meet agreed-upon service level agreements.

 

The agreement should also specify the process for requesting the release of the deposited materials, including any timeframes and documentation requirements.

In today's world, software is an integral part of business operations. It is used to streamline processes, manage data, and enhance productivity. However, it is crucial to ensure that your software is secure and protected. A software escrow agent, such as Codekeeper, can assist with this. 

 

A software escrow agent is a third-party that holds the source code and other essential materials of your software in escrow. The materials held in escrow are released to you if certain conditions are met. In this article, we will discuss how to choose a software escrow agent.

 

Look for Experience

The first thing to consider when choosing a software escrow agent is their experience. You want to work with a company that has a proven track record of providing reliable escrow services. Look for a company that has been in business for several years and has a good reputation in the industry. Codekeeper has been in business for close to 10 years and has served thousands of clients worldwide, including the top 4 accounting firms globally.

 

Check for Certifications

Certifications are a way to ensure that a software escrow agent is qualified to provide the services they offer. Look for certifications such as the International Association of Software Architects (IASA) Certified Software Architecture Professional (CSAP) or the Software Engineering Institute (SEI) Capability Maturity Model Integration (CMMI). Security is our top priority, and we operate in compliance with ISO27001 guidelines.

 

Evaluate Their Security Protocols

Security is a critical consideration when it comes to software escrow. You want to work with a company that has strict security protocols in place to protect your source code and other materials. Ask about their physical and digital security measures, including how they store and transmit your data.

 

Secure system processes are at the core of our products and services. We safeguard your source code and data with strong encryption, firewalls, secure email, and proactive 24/7 system monitoring.

The Metaverse and NFTs are two of the most exciting technologies that have taken the world by storm. These innovative technologies have already started impacting the world in many ways. While they are still in their early stages, they are poised to grow and revolutionize the world. One area where the Metaverse and NFTs are expected to have a significant impact is on IP protection.

 

What is the Metaverse?

The Metaverse is a virtual world that exists within the internet. It is a fully immersive world where users can interact with one another in real-time. The Metaverse is a world where people can create their own avatars, own virtual property, and do just about anything they can in the real world. It is a world where users can shop, play games, attend concerts, and even attend virtual conferences.

 

The Metaverse is still in its infancy, but it has the potential to revolutionize the way we live, work, and play. It is expected to become a multi-billion-dollar industry by 2025, and its impact on IP protection is likely to be significant.

 

How might the Metaverse impact IP protection?

The Metaverse is a new and emerging technology, and as such, there are still many unknowns. However, one thing is certain, the Metaverse will have an impact on IP protection. As more and more businesses move into the Metaverse, the need to protect their IP will become paramount.

 

One of the ways that it might impact IP protection is by creating new types of IP. In the Metaverse, virtual property is just as valuable as real-world property. As such, virtual property rights will become increasingly important. For example, a business might create a virtual storefront in the Metaverse to sell its products. The virtual storefront will be just as valuable as a real-world storefront, and as such, the business will need to protect its virtual property rights.

 

Another way that it might impact IP protection is by creating new opportunities for IP infringement. In the Metaverse, it is easy to create copies of virtual items, and this could lead to an increase in IP infringement. For example, a business might create a virtual item that is unique and valuable. However, someone else might copy the virtual item and sell it as their own. This would be an infringement of the business's IP rights.

 

In order to protect their IP rights in the Metaverse, businesses will need to be proactive. They will need to develop strategies for protecting their virtual property and for enforcing their IP rights in the Metaverse. This includes working with an IP escrow agent like Codekeeper to secure their digital assets.

SaaS (Software as a Service) escrow is a process of placing software source code into an escrow account for safekeeping. The purpose of SaaS escrow is to provide assurance to SaaS users that their important data and software will be secure even if the SaaS provider goes out of business, fails to maintain the software, or experiences other difficulties.

 

SaaS escrow is becoming increasingly popular as more and more businesses rely on SaaS to store and manage their critical data. Many organizations are concerned about the risks associated with entrusting their data to third-party SaaS providers, and SaaS escrow can help to mitigate these risks.

Disasters can strike at any time, and it is essential for businesses to have a disaster recovery plan in place. When it comes to software, disaster recovery is crucial for preventing data loss and ensuring that business operations can continue uninterrupted. So what are the steps businesses can take to implement an effective disaster recovery plan?

Up until last Friday, SVB was the 16th largest bank in the USA. The bank was worth a whopping $200 Billion. ‘Was’ is the operative word here, as a series of unfortunate financial decisions has now led to its collapse. 

Silicon Valley Bank (SVB), a prominent financial institution in the technology industry, has experienced significant financial losses which have led to its collapse. The collapse of SVB has far-reaching consequences for the tech industry, as it has played a crucial role in financing and supporting startups and established technology companies.

Software escrow agents are impartial third parties who retain and manage copies of software programs and their source codes on behalf of both software developers and users. This practice is known as software escrow. Software escrow serves as a safeguard and source of comfort for both parties in the event of unforeseen occurrences like the software developer's bankruptcy or suspension of activities.

In today's technology-driven world, software is a crucial aspect of many businesses. Companies rely on software to manage operations, store data and carry out various other functions. However, software can be vulnerable to a variety of risks, including unexpected events that may cause the software provider to go out of business or cease support for the software. In such situations, a software escrow agreement can provide companies with protection and peace of mind. This article will discuss what to look out for in a software escrow agreement.

After months of sleepless nights filled with seemingly endless coding and testing, it is finally here. We’re excited to introduce you to the all-new Codekeeper V4!

Software escrow is an important part of any software development project. It ensures that the software end-user has access to the source code in case of a dispute or other unforeseen circumstances like a natural disaster, or even death. 

When it comes to choosing a software escrow agent that suits your individual needs, there are some elements you need to take into consideration.

A new year usually brings about a ‘season of change’. New year, new you! Although we can assure you that we aim to continue as the market leader in providing software escrow services, we do have some exciting news.

If you’re a technology company, chances are that your intellectual property (IP) is one of your most valuable assets. It’s important to protect it with the utmost care and attention. One way to do this is by putting your IP into an escrow agreement, or “IP escrow”. This means that a third party will hold onto your IP in case something goes wrong with the agreement between you and another party, such as a vendor or customer. Here are some of the ways that an IP escrow can help protect your business.

In this modern age, most industries can be vulnerable to ever-lurking hackers looking to make a quick buck. Though there are a few especially targeted industries that threat actors might be interested in due to highly valuable data that translates to potential profitability. In the world of data security, trends show that these 5 industries are at the top of the cybercriminal hitlist.

When it comes to legal agreements, make sure you know what you're signing for.

 

Your enterprise relies on mission-critical software and applications that you cannot afford to lose access to as it would result in severe losses in revenue. 

You’ve done your research and have decided that it would be in your company’s best interest to enter into a source code escrow agreement. Now the next question you need to ask yourself is: what type of software escrow agreement is best for your business's individual needs?

Although the concept of software escrow agreements is widely recognized, the terminology used in these agreements can still leave one scratching your head.

Let’s have a look at the different types of agreements:

 

Consider the following.

We’re heading into a new year and your business is thriving. Congratulations! There is no doubt that you have worked hard to get to where you are today. You’ve invested time and money in your people and resources and you’ve finally found the winning recipe. Your impressive annual sales reports are evidence of a business well run. You use state-of-the-art software solutions that give you the upper hand over your competitors.

Businesses increasingly rely on software that stores revenue-generating and highly customized data. A sudden limitation in data access could mean the failure of the entire business operation. This is where software escrow agreements come in, as they protect these data by depositing a software source code with a third-party agent. This trusted agent works to protect the developer's intellectual property while keeping a safe copy for the licensee.

If anything happens, like when a vendor can no longer support the software, the source code can be released from escrow to the licensee in order to keep their business running and give them options to move forward. Deloitte emphasizes that businesses should plan contingencies through resilience programs in order to create a proactive and agile risk capability. A software escrow is one intelligent component of a continuity strategy in an ever-changing business environment. Because developers will not part easily with their source code, having a software escrow agreement is the most effective way to overcome such an impasse.

Dwight Olson CLP, author of The Long Journey to Software Valuation, describes technology escrow as a business tool. Olson explains that it allows for a proper software valuation and protects licensing and intellectual property. Because software is an asset with substantial monetary value, businesses have an interest in protecting it from risks, much like any of their other assets. This is precisely the kind of protection that software escrows can provide.

However, despite being proven effective, many companies are still hesitant to acquire a software escrow because of misconceptions that plague the transaction. Today, we'll debunk those common myths about software escrow:

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Disney’s new series, “The Dropout”, has every tech entrepreneur and investor glued to the tv with their hands in their hair.

Sixt, the car rental giant located in Germany, confirmed that a cyberattack caused major disruption in their systems last week. 

 

Risk planning is already a critical part of every business's strategy, but the past few years have cemented its importance in business continuity. Recognizing the impact of the pandemic on businesses, Escrow Europe Director, Guy Krige, emphasized that businesses should not wait for events to trigger a disaster before investing in a software escrow. Krige pointed out that risks are inevitable, but they can be managed through source code escrows that protect mission-critical software programs in the unpredictable landscape of business.

While no one wants to experience disasters, businesses can safeguard their stability by arranging a software escrow agreement. To illustrate, here’s why escrows should be a part of your disaster recovery plan:

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The ultimate guide to Software and source code escrow Conclusion 

 

Do I need to verify my software escrow deposit?

 

What should be deposited in my software escrow?

 

 

How do I choose the right software escrow?

What would be the best choice for you; a more traditional source code escrow or an automated solution. In this chapter we will go over both and their unique properties so you can choose the right one for you.

 

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This frequency was enough back in the day because the actual source code only really changed one to two times per year. So if a beneficiary was eligible for an escrow release, they were likely to get the most recent source code.

Traditional escrow agents tend to employ the waterfall development model, which is a “far less iterative and flexible approach, as progress flows in largely one direction ("downwards" like a waterfall) through the phases of conception, initiation, analysis, design, construction, testing, deployment and maintenance.”

Besides being less iterative and flexible, as a more labor-intensive solution, this approach is also much slower and significantly more expensive. This is especially true when a traditional escrow provider takes on SaaS companies as clients, who innately have greater needs — especially in terms of ongoing updates. This means the escrow agent has to perform more services and dedicate more resources and workers to meeting their SaaS customers’ needs.

One way in which this manifests is with deposits. It’s not uncommon to see considerable additional charges for licensors whenever it’s necessary to deposit a new version of a software; or for end-users, whenever they need to access new features and functionalities.

In the same vein, the backup and storage of data are not likely to be addressed in a traditional source code escrow agreement. Having access to the most up-to-date source code, as well as all accompanying materials and data necessary for a successful recovery, is a prerequisite to a successful software escrow relationship. From the perspective of the end-user, this is an absolute must-have for any source code escrow agreement today. 

Needless to say, traditional software escrow solutions were not designed for the agile software development methods that we see in SaaS environments today, where software is updated on an ongoing basis. Should the software supplier or the customer ever need to rely on the source code being up-to-date, a traditional solution would typically not be the most effective way of escrowing software.

 

We get it! Working with a supplier can be anxiety-provoking; you’re putting someone else in control of a major component of your business, your software.

Luckily, there are ways to ensure that both you and your suppliers feel safe about your partnership.

Don’t want to worry about what happens if the software vendor goes out of business?
Concerned about not having access to the source code and other materials you need to maintain and update your software?

Don’t want to think about what could happen to your business if your supplier discontinues the maintenance and support of the software?

No worries. We’ve got the insider secrets you need to get the best out of your software suppliers…

 

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Use a source code escrow service.

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Ask for documentation to be included with the source code.

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Be prepared for common supplier objections.

 

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Do I need a software escrow agreement?

Do you need a software escrow agreement? In this chapter we aim to provide you with sufficient information that will help you decide if a software escrow agreement will benefit you, whether you’re a software developer/ vendor (licensors), or a corporate end-user (licensees).

Comprehensive software escrow services protect the interests of technology developers, as well as the businesses that purchase their products or subscribe to their services. Let’s take a closer look.

 

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Not to mention, offering an escrow agreement to your clients can give you that extra bit of leverage in agreement negotiations. Software escrow is often referred to as “the great sales enabler” for that exact reason. It creates a sense of partnership and trust while eliminating a very common hurdle to sealing deals with your clients.

If your development agency is in it’s startup phase, software escrow services can help establish credibility among your clients and prospects, while positioning yourself on par with bigger, more established competitors.

However, it doesn’t matter whether you’re new to the market or a seasoned veteran, escrowing software sets you apart from your competitors. In today’s saturated market, developers can use all the edge they can get.

In return, software escrow protects your intellectual property rights and helps you avoid courts and litigation. Having to worry about litigation is not only a major nuisance, but it also costs a lot of money, a lot more than a cost-efficient software escrow solution would cost you.

 

A source code escrow agreement is beneficial to both the supplier and the beneficiary, but these two parties can at times appear to have opposing needs. That’s why it’s important to make sure that your licensing agreement is balanced.

Fortunately, that’s exactly what source code escrow services are for. At CodeKeeper, we have both the technical and legal expertise to ensure that your licensing agreement is secured.

We protect the interests of both the software vendor and the licensee.

Based on our experiences, here are our top tips on how to negotiate a balanced source code escrow agreement.

 

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1. Going into negotiations, be aware of the benefits to you.

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2. Clearly define the release conditions

 

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3. Negotiate which materials need to go into the escrow

 

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Who pays for software escrow services?

The question of who should pay the escrow fees—the licensor or the licensee—has no right or wrong answer, and there is no established standard practice.

On the one hand, there are certainly instances when the beneficiary pays the escrow agent directly. For the most part, however, it’s actually the licensor who is responsible for payment of escrow fees. This is something that is often considered an expected cost of running a licensing business.

But even though the licensor may pay the fees, the licensee ultimately reimburses the licensor, more often than not. In fact, they may even pay a greater fee to the licensor at the outset to cover both escrow fees and the licensor's administrative expenses.

The main reason that we see the beneficiary covering the cost of the escrow in some way, shape, or form is that the escrow is set up in their best interest. If a licensor were to go out of business for any reason, they wouldn’t be as concerned over what happens to the system that they’ve licensed out to clients. 

So even if the beneficiary doesn’t directly cover the cost of the escrow by paying the escrow agent, they will still be paying that fee through their licensor’s service charge.

Tip: To read more about who should pay for source code escrow (and how much), check out this article.

 

Although software escrows have been used since the 1970s, they are becoming increasingly more common and necessary as a practice for modern enterprises. As a result, there are a number of software escrow solutions on the market today, and some of them have been around for decades.

However, not all software escrow providers offer the same services, the same level of quality and security, and the same ease of use. And then there’s pricing, of course, which is an important aspect in and of itself.

So whether you’re a licensor or licensee on the hunt for your next software escrow, it’s important that you examine all of these factors to be able to choose a solution that meets your needs while providing top-notch security and flexibility.

Codekeeper, in particular, was born out of a need for source code escrow that is simple to set up and use, fully automated and integrated into developer workflows, and last but not least, transparent and fair with pricing.

In this article, we will consider the current situation in the software escrow market both in terms of use and pricing. We will also look into how Codekeeper’s modern automation technology allows us to offer a superior service at a much lower price when compared to other providers on the market.

 

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What are some examples of release conditions?

So we’ve caught up on Software Escrow and all the ins and outs. But what are some release conditions that can be incorporated in a Software Escrow agreement?

Parties to the agreement are free to negotiate any release terms that can be validated independently by the escrow agent. Most commonly, however, these terms revolve around the licensor's financial or operational standing. A release may be triggered if, for example, the licensor enters voluntary or involuntary bankruptcy, or if the licensor fails to operate in the ordinary course of business (OCB). 

Two other very common “custom” release terms that are requested by beneficiaries are that the material in escrow be released in case the vendor is acquired by another company, or if the provider fails to fix an error in the system within a given time frame.

 

Are you aware that you need to implement software escrow in your licensing agreements, but don’t know the best way to start? Then this is exactly the article for you.

Below you will find information on what a software escrow is, why you need them in your licensing agreements, and what the best way to use them is.

 

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Why is having access to source code so important?

In the case of typical, off-the-shelf software, only object code (i.e., executable code) is licensed out to the end-user. In commercial licensing deals, however, the licensee may have a legitimate interest in object code, as well as source code as an assurance that their mission-critical systems will remain functional. Accessing source code allows the licensee to see how the software is processing data or performing functions, and can even allow the licensee to change the operation of the software if necessary.

In that sense, source code is the DNA of a software application. It is code that is written in a programming language that is readable (and modifiable) by humans, and without it, developers can’t debug or upgrade software applications. In other words, they can’t ensure that the system will continue working as intended.

So if, for instance, a software vendor goes out of business, without modifiable source code, the software is as good as dead. Depending on how critical the software is to your business, the effects of losing access to the source code could be nothing short of devastating. Later in the ebook, we will examine some of the risks that software escrow helps mitigate, as well as the benefits that it offers to both licensors and licensees.

 

 

Software verification is an essential step in the process of deploying new and updated software. This article goes over what exactly software verification is, how to know if you’re doing it and doing it properly, and how to recognise your own inefficient practices and turn them around for better deployments.

Let’s get started with pinpointing precisely what is meant by software verification.

 

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How does software escrow work? 

Software escrow agreements vary depending on the agent’s scope of services, including verification services & SaaS escrow, but the core responsibilities of the parties are more or less consistent across the board.

We will tell you about the journeys each party goes through when onboarding software escrow.

 

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For the beneficiary to initiate an escrow on the Codekeeper platform, the first step would be to register their account on our pricing page under the software escrow package which appropriately suits their needs. Once the account is set up, they can move towards initiating the escrow by entering all of the contact information of the relevant parties, inviting their depositor to sync up their source code repositories with our platform, and request custom terms for the escrow contract. Once the beneficiary and depositor have signed on to the agreement, the escrow is active! 

 

 

Are you thinking about outsourcing, but are concerned how effective or cost efficient it will be?? That’s understandable. Many managers and business owners struggle to decide whether outsourcing is the right choice for their company or not.
Fortunately, there are other companies that have already made their decision to outsource, and they can share their experiences with you.

This article takes a look at one company that saved over $50,000 by outsourcing part of their activities and talks about how you can get started on the same path towards greater savings and improved efficiency.

 

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What’s the difference between software vs. source code vs. SaaS escrow? 

Software escrow. Source code escrow. Saas escrow. Technology escrow. Data escrow. Information escrow. Domain escrow. So many escrows!

If you’ve been researching what a software escrow agreement is—and since you’re reading this article, a wild guess would be that you have. You have  probably come across these and other terms. But what do all of them mean?

 

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As described throughout this article, this is the most common type of escrow, designed to store not only source code, but also build instructions and any other important documentation that would allow a licensee to update and maintain a mission-critical software application. Though they are most commonly used for traditional on-site software licenses, software escrow can also be used for development agreements, software acquisition agreements, and any other transactions involving software.

 

Data Escrow, Saas Escrow, Source Code Escrow, it can all get a little confusing, this is why we accumulated all the frequently asked questions straight.

 

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Specifically, by deploying data escrow, the application's end-user (licensee) ensures they are always able to access the most up-to-date copy of the data they need to operate critical functions and ensure business continuity. The data in escrow can only be released to the licensee under predefined (and verified) conditions, such as in the event of a natural disaster or their licensor running out of business.

 

What does Data Escrow mean?

Data escrow is a specialized data protection solution designed to maintain the safety and integrity of data essential to the proper functioning of a mission-critical software application.

 

Who is data escrow for?

Any company that builds software applications and their clients. While data escrow is not intended to replace operational backups, security-minded companies that commission software use data escrow to bolster their risk mitigation. Software developers, on the other hand, use it to boost sales by strengthening their business case and providing more value to their clients.

 

Why do people use data escrow?

When you build and use a software application, you create data. There is no way around it. And this data can be stored in environments where software is deployed and executed, including databases in different physical locations, asset stores like AWS S3 and Microsoft Azure, in-memory databases, and many others. In case critical data suddenly becomes inaccessible for any reason, your software application would lose its normal functionality.

 

What can cause data loss?

Data loss occurs when data is accidentally deleted or something causes it to become corrupted. Viruses, physical damage, formatting errors, or a combination of these can render data unreadable by both humans and software, posing a risk to the financial health of businesses of all sizes.

 

 

Who’s who in a software escrow agreement?

We use the following terms interchangeably throughout this article:

The licensor is typically a software developer or vendor who deposits source code and other materials into escrow. They're also referred to as the depositor. The client, or the authorized end-user, is typically  referred to as the beneficiary or licensee. A neutral third party, such as Codekeeper, typically serves as the escrow agent, providing secure storage of the source code and other materials, and making available (releasing) the contents of an escrow account to its beneficiary (or, beneficiaries) — upon a release condition being met.

 

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During renegotiation of their licensing agreement, the client might request that the system in question be deposited into escrow. Should any adverse, unforeseen event take place, the client will be able to retrieve the valuable code and IP, and resume operations as usual.

These smaller development teams can also use software escrow as a selling point for their services, reassuring potential clients that if anything happens to the firm, the IP is secure in storage, up to date, and ready to be released once a trigger event takes place. 

 

If you’re thinking about outsourcing your development, you must surely be wondering about how to keep your data secured.
Data breaches are a real danger that can lead to fines and a damaged reputation. It's very important to understand how your data is being handled by everyone you work with, especially when working with agencies in different countries where the laws may differ.

This article gives you six tips on securing your development outsourcing. These tips include protecting your intellectual property (IP), asking about security certifications, limiting privileges, forming an airtight agreement, and preventing breaches.

 

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You can then discuss intellectual property policies with your selected agency. You will want to make sure they understand the laws and that they follow the rules.
Ask about their security measures around intellectual property protection. For example, do their employees sign non-disclosure agreements (NDA)? The agency should be able to provide these details in-depth. If not, take it as a red flag. You can also discuss discrepancies and have your lawyer add this to your contract.

The agency should be able to provide these details in-depth. If not, take it as a red flag. You can also discuss discrepancies and have your lawyer add this to your contract.

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What is a software or source code escrow agreement?

If you’re a SaaS company and you’ve been in business for a few years now, you may have already come across a prospective business partner who was pretty insistent on the inclusion of a software or source code escrow agreement as part of the license terms. Eager to close the deal you’ve been negotiating laboriously for weeks or months, you now need to figure out how to give your client what they want while finding a way to save resources, whether it’s time or money.

If, on the other hand, you’re a company looking to gain a competitive advantage by using new technology and automating your business processes, you may be outsourcing the development of said technology (i.e., software application) to an emerging software company. If that company is not quite established or profitable yet, you may now be considering minimizing the risk for your own company by implementing a software escrow agreement.