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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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