Facts about Software Escrows
Software is a shortened but commonly used term for computer software, and it is identified as a part of the computer system that consists of instructions and encoded information of the computer device, which is in comparison to the physical hardware of these devices. The different categories of computer software includes the nature or domain of execution such as server software like web applications, embedded software, plugins, desktop applications web browsers and software applications, and microcode; programming tools in the forms of applications and programs that are being used to maintain, debug, improve, fix, support and create software; and the purpose or domain of use which can be divided into malicious software or malware, system software like utilities, device drivers, and operating systems, and application software. Software developers are also called as software analyst, software engineers, hackers, coders and programmers, and their basic function is mostly concerned with the variety of aspects of the process of the development of computer software, which includes programming, design, testing and research of the software in the computer system.
One of the most critical moments of every business who have their very own custom software is continuing the operation and maintaining it, even if the licensor is unable to do so, and most of them have their ultimate desire of ensuring that it may continue to operate despite the other undesirable reasons, and the best solution for that is to be engaged in software escrow and it can only be achieved by obtaining as copy of the recently updated source code of the software. Source code escrows is another term used for software escrows, which is defined as the deposit of the source code of the computer software with the use of a third party escrow agent. The licensee or the party licensing software is the one who request the services of an escrow agent, just to ensure that the operation and maintenance of the software will continue, and it is defined as a contractual arrangement in which a third party will disburse and receive the money and the documents for the primary transacting parties and this act will be based and will be dependent on the agreed conditions of the transacting parties. If the licensor files for bankruptcy or fails to update and maintain the computer software and any other reasons like acquisition, merger and obsolescence, the software source code will be released and given to the licensee, and this agreement is stated on the license agreement of the software. Software escrow is identified as a form of contractual relationship between three parties, such as the escrow agent, licensees and licensors, and it can be formalized in an agreement done by this three parties.