By Chris Smith of Escrow Associates
Software escrow is one of the best-kept secrets in the legal community. Although software escrow agreements have been in use for the last 20 years, they are becoming increasingly important to any company using software for vital business operations. In today’s volatile environment, no one can afford to risk access to critical business systems or significant investments made in software and integrated systems, all of which are further complicated by the move to hosted-systems.
Attorneys today are challenged to be well-versed in the practice of software escrow so that they can advise clients about the option of using a software escrow agreement to protect their capital investments. In order to assist attorneys in this challenge, this article explores:
- The nature of software escrow
- How software escrow is a legal area ripe for expansion and diversification
- Examples of software escrow for major engagements such as Sybase and the US Air Force
- What to look for in a provider
Step One: Discovering The Software Escrow Market
Imagine a frantic phone call from a client. As you talk, it is obvious that your client is hurried, worried, and panicked. They need your counsel now. Their software vendor is struggling financially, laying off key staff. It’s obvious that support for their licensed technology is de...