The term escrow means a contract between two or more parties who keep a valuable to a third party who acts as an agent. Among the things that can be stored by the escrow are money, documents or properties. The third party will hold the documents until a certain condition. The software escrow is a form of a protection that that is offered to the licensee given to the software as a security code that can be used in case something goes wrong. Most of the programmes can create a program where they can write a security code in it. The program that is created have a source code that is transferred to the programs that are executable. You can transfer the executable programs for your own use.
Those who have the knowledge and experience about the executable programs can just source the security code and be able to create the application themselves. Once a company that developed the software is not paid by the company they created the software for because of bankruptcy the escrow agent can release the software source code to the licensee so that they can work with them.
The parties that use and sign the escrow must understand that escrow have some necessities that must be met. Most of the software escrow service may offer custom software to different companies that are very vital and critical to the company itself. The operations of the escrow software have to continue the maintenance even if the licensor is not in a position to do so because of bankruptcy. If you want to do this the easiest way you can ask for a copy that is updated of the source code. The licensor will always be reluctant to agree to this term because the source code represent a trade secret that is guarded heavily.
Currently there are other serious issues apart from deception. The serious issues may involve a huge amount of money. The agency enables the purchaser to have some protection and the protection is more efficient when the source codes are used. The program developer can be protected from fraud by the software escrow. This is because developing some of this programs is very expensive and they take a lot of time to be completed because they take days months and even years. The licenser and the licensee should know what is expected of them so that the agreements can be set for them. If the terms of the escrow are not fulfilled the escrow agent can take an action that was agreed on when signing the agreement. Before you sign the agreement it is important that you read the agreement carefully before signing it.