What is Software Escrow?
Software escrow is a three party agreement between a software developer (the depositor), the end user (beneficiary) and the Escrow Agent. The objective of a software escrow agreement is to provide comfort to the end user that if the software developer is unable or unwilling to support the software, the code can be released to them.
The agreement outlines the responsibilities of all the parties and includes the pre-defined release conditions.
What are these release conditions?
If a release condition occurs, the beneficiary can apply to the escrow agent to release the software code. The depositor has the opportunity to dispute such a release condition and if necessary, the dispute may be moved to arbitration.