What is a source code escrow agreement?
Get Legal Help Today
Secured with SHA-256 Encryption
UPDATED: Jul 15, 2021
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Software escrow means deposit of the source code of the software into an account held by a third party escrow agent. Escrow is typically requested by a party licensing software (the licensee), to ensure maintenance of the software. The software source code is released to the licensee if the licensor files for bankruptcy or otherwise fails to maintain and update the software as promised in the software license agreement.
What are object code and source code? Object code is the software’s programming code translated into machine-readable form, zeros and ones, which humans cannot understand and when compiled forms source code. The form of the code which humans write and understand is called source code.
A Source Code Escrow Agreement is an agreement between the software owner, the party receiving the license and the escrow agent. As it is a three-way agreement, negotiations can some times be difficult.
Click for an article covering more information on the clauses and these contracts in detail as well as forms to cover these situations.