Software Escrow

Why Use It?

Software Escrow, sometimes known as Source Code Escrow, is an essential risk management tool for modern business.

In today's commercial environment companies and individuals rely heavily on information technology. Software is, for most businesses, not only the most critical but also the most vulnerable component of such information technology. Businesses do not only become dependent on the software, they also become dependent upon the software provider.

Because software, particularly purpose-developed or customised software, requires maintenance and invariably involves updating, businesses have a vital interest in ensuring that upgrading continues. Rarely under a licence agreement do end users obtain access to those components of the software system necessary for the understanding, maintaining or upgrading of the software; they gain access to object code rather than source code and other vital material. The presence of the software provider therefore becomes as integral to the business of the end user as the software itself.

Continued access to the software provider cannot be guaranteed and as a result commerce at large, as a massive user of information technology, is constantly at risk. End users such as resellers, manufacturing industries, banks and financial houses, whose success is dependent upon third party proprietary technology, need the reassurance that the Software Escrow provides.

Software proprietors have different, but related concerns. Their software represents a significant investment in research and development, one that is all too easily misappropriated as current statistics on software piracy demonstrate. The integrity of the source code is vital to the protection of their intellectual property. For this reason source code and supporting material is rarely supplied under a software licence agreement.

Software Escrow is designed to provide businesses with access to the source code and supporting material necessary to maintain the software if the software provider cannot or will not do so, under conditions in which the risk to intellectual property of the software proprietor is minimised.

Assurex Escrow Pty Ltd protects both developers and end users, by holding and maintaining the critical technology for their mutual benefit and security.

Prudent businesses do not leave their future to chance. Software Escrow is the only certain method of ensuring access to source code and supporting material when the need to do so can be critical to an organisation's continuing operations.