ETI's Editor's Desk

This is a nightmare you wish will end with your waking up. Your company spends a crore or more to license some software. Then the company you paid a crore or more goes bankrupt. Now you have a crore plus worth of orphaned software. I would not like to in the position you are in, if the situation explained above does occur.

"This scenario will not occur….in the case of my company" , the Commonest quote. In today’s business climate we all know how volatile different segments are; especially the software segment. In a very limited space of time companies face the “Prince to Pauper” Syndrome. So why take a risk.

ETI Shrinks the Problem

When you license software, you typically get a license to use what's called the "object code." Object code is the machine-readable code. Not even the best of computer wizards you know can read object code.

Mere humans read and work in "source code." Source code is simply computer code humans can read. If your software developer goes under or refuses to support you, you'll need the source code if you're going to have any hope of hiring your own programmer to fix bugs, develop new features, or make any changes in the computer code you're using.

All’s Well that ends well – Your Solution

Here's the rub. You want to have the source code in case you need it. Your developer doesn't want to give it to you because they consider it their ultimate trade secret. The problem is that from their perspective they're right. Developers never want to give you the source code because it's their lifeblood. It's the secret sauce that prevents you from easily stealing their intellectual property.

It's looking like a stalemate, but it doesn't have to be. The compromise is a source code escrow. The typical setup will have the developer deposit the source code in escrow with a trusted third party. The escrow agreement requires that the escrow agent not release the source code to you unless certain release conditions are met. These conditions will typically be things like the developer's bankruptcy or failure to support you as required by your agreement.

This is the basic solution, but to know more about escrows log onto www.escrowtech.in or mail us at info@escrowtech.in