With the Information Technology industry developing at a very rapid pace, the number of companies who patronize IT services and products have grow to astronomical propotions. It is in such a scenario that Software & Technology Escrow agent plays a crutial role of a trusted, reliable and neutral third party between the software product company and the licensee.
The escrow service industry was unchartered and unexplored from the Indian point of view and many of the Indian companies used escrow service providers in the west, Primarily in UK and US or in Europe. This situation was detrimental to the companies using escrow services abroad from several perspectives, a few of which are mentioned below:
1)The jurisdiction which governs the escrow agrement are normally where the escrow service provider is located( UK,the USA or Europe).
2) In the event of a dispute arising in future, the cost of waging a legal battle on foreign soil would be abnormally high.
3) In rare cases were physical inspection of the source code being necessary,the cost and time consumed in this procedure would be very high.
4) The cost of using an escrow service provider abroad will not only prove to be very expensive but will continue to do so for all the other services offered along with the basic escrow service.
The bitter truth is that Indian companies who use or wish to use an escrow service provider abroad are compromising on several fronts when entering into an escrow agreement.
We at EscrowTech India provide you with varied options, and watertight solutions for all your escrow needs. In our next article we will see as to what EscrowTech India has to offer, and discuss the Pros of an escrow with EscrowTech India.
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