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POST 10 - Codekeeper_blog_week 15_cover

3 minute read

A Step-by-Step Guide to Preparing Source Code for Software Escrow.

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.

POST 9 - Codekeeper_blog_week 15_cover

2 minute read

Why Startups and Early-stage Companies Should Invest in IP 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.

POST 8 - Codekeeper_blog_week 15_cover

2 minute read

How Our Software Escrow Solutions Cater For Various Business Sizes

In today's competitive business environment, safeguarding software source code and ensuring uninterrupted access to mission-critical applications is vital.

POST 7 - Codekeeper_blog_week 15_cover

2 minute read

The Intersection of Software Escrow and Cybersecurity

In today's digital age, businesses rely on software applications to perform a wide range of tasks, from managing inventory to processing financial transactions.

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enterprise, source code escrow

Can You Really Afford Not To Invest In Software Escrow?

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.

enterprise, source code escrow

Debunking Common Myths About Software Escrow

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:

Getting a software escrow is optional

A software escrow is designed to store an application's source code, virtual machines, configuration, build instructions, and other critical documentation. A business can easily overlook or see such an agreement as an added operational cost. However, as we outlined in our post ‘Escrows as Part of Your Disaster Recovery Plan’, they need to be part of your business risk strategy. Your disaster recovery plan should include an escrow because companies should anticipate disasters before they happen instead of managing their after-effects. Escrows ensure the stability of a business by protecting critical software programs that are inevitably affected by the unpredictable industry landscape.

enterprise, source code escrow

The Elisabeth Holmes case: A prime example of why you should always perform a technical due diligence

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

enterprise, source code escrow

How Sixt, the car rental giant, avoided mayor losses during cyberattack

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

enterprise, source code escrow

Escrows as Part of Your Disaster Recovery Plan


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:

The Role of Escrows in Disaster Recovery Plans

Businesses have been hard-hit by the pandemic, but the event has taught us all an important lesson about investing in operational resilience. While businesses may not be able to predict future disasters, they can ensure that they will be able to bounce back and maintain their commercial status by establishing a proper disaster recovery plan.
In fact, even government bodies are urging businesses to establish their operational resilience, since disasters can cause crises in important sectors. To illustrate, Chris Hansen of Adoptech shared that the financial services sector was heavily hit when cloud computing service Fastly caused an Internet outage that locked millions of customers out of their accounts. PayPal was just one of the institutions that was affected by the internet outage, causing an alarming financial crisis among users. When developers fail to fulfill certain obligations like these, Hansen pointed out that businesses will not be able to access their source code and critical documentation without an escrow arrangement.
Technology escrow arrangements are critical in mitigating risks, since these arrangements require developers to provide the software source code, IP, and documentation to trusted and independent escrow agents. In case the developer fails to support the product as pre-defined in the escrow agreement, the escrow company can pass the classified programs and documents to the business so that they can maintain the technology.
Through an escrow arrangement, your organization’s database administrator can secure and back up crucial company information so that your business can keep the systems up and running. Database administrators are experts in managing large quantities of data, so they can organize the documentation from escrow companies and adapt database structures to address the company’s present concerns. This ensures that businesses will be able to control and manage their source code whenever the developers fail to abide by the agreement.

enterprise, source code escrow

Enterprise Risk Management (ERM): What It Is and Why You Should Care Part 3

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