Source Code Escrow involves depositing the source code of software with a third-party escrow agent. This arrangement is typically requested by the party licensing the software (the licensee / beneficiary) to ensure that if something happened to the licensor / depositor, the software will be maintained.
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What is Source Code Escrow?
Source Code Escrow is a three party agreement between a software developer (the depositor), the end user (beneficiary) and the source code escrow company. The objective of a source code escrow agreement is to provide comfort to the beneficiary that if the software developer is unable or unwilling to support the software, the source code and other critical components such as databases, deployment scripts, and documentation can be released to them.
The source code escrow agreement outlines the responsibilities of all the parties and includes the pre-defined release conditions.
Examples of typical software escrow release conditions
The release event conditions usually included within a software escrow agreement (these may be amended):
- Bankruptcy;
- Insolvency;
- Discontinuing support or service of the critical software application;
- Failure to support the product that is licensed to the Beneficiary and then failing to cure such a material breach within ten days of notice;
- The sale of intellectual property rights to a third party who does not continue providing the same level of protection provided for the beneficiary in the escrow agreement.
Following a release event, the beneficiary may request for The Escrow Company to release the deposit materials including the source code. The depositor has the opportunity to dispute such a release event and if necessary, the decision may be moved to arbitration.
What Type of Source Code Escrow Agreement Do You Need?
The Escrow Company offers a range of free template agreements which provide a great starting position to commence the negotiation of a fair SaaS Escrow contract.
Source Code Escrow Deposits
Depositing data is a critical component of the SaaS Escrow agreement. As a leading global vendor of SaaS Escrow services, we understand that the process needs to be simple and secure.
We offer our clients two methods to deposit data with us.
Automatic Deposit From Git
The developer can automatically upload the source code from their Git repository using SSH encryption. This process ensures that Escrow London always maintains an up to date version of the source code. We support all popular Gits including GitHub, Bitbucket, GitLab, Azure DevOps (TFS) and more.
Cloud Deposits
We provide all our customers with a client to securely upload their files via secure FTP to our servers. All the data is encrypted while in transit and at rest. We utilize the power of multiple-region cloud storage to provide source code and data storage within the UK, EU, USA, AUS and also Canada. Other regions are available according to our clients’ requirements.
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