Software Escrow is basically a protection for written software.

When you hire someone to make a working computer program for you (which is called a software), there are several decision points that need to be discussed. One of which is the keeping of source code. For those who are still not familiar with it, a source is a set of instructions that make up a software. It is basically a written computer language to make the software running.

In some cases, the author of a software does not include the source on the package. However, if the client wanted to keep the said source code, additional payment is usually required. With this, the client can make necessary modifications on the logic of the software to comply with current business process.

Going back to Software Escrow, this ensures that the owner of the code get the necessary protection with his work. For this, an escrow agent is being hired as a third party to keep the source code. So, depending on the transaction of the contractor and the client, this agent will give or not give the source code to the client. He serves as the code keeper and will just give it to the client if the owner permits it (maybe after payment).

We’ll give you more information about an escrow so stay tuned..

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