Definitions of an escrow:
“Escrow is a legal arrangement whereby a thing (often money, but sometimes other property such as art, a deed of title, or software source code) is delivered to a third party (called an escrow agent) to be held in trust and safe custody, pending a contingency or the fulfillment of a condition or conditions in a contract. Upon that event occurring, the escrow agent will deliver the thing to the proper recipient; otherwise the escrow agent is bound by her or his fiduciary duty to maintain the escrow account.”
“A written agreement between two or more parties providing that certain instruments or property be placed with a third party in safe custody to be delivered to a designated person upon the fulfillment or performance of some act or condition.”
Software / Source Code Escrow:
These are two definitions of an escrow and the same applies to Software & Technology Escrows. In case of software escrows the source code is the subject matter otherwise called the “Escrow Property” or “Deposit Materials” to be escrowed. The subject matter is the source code, the only variant being the terminology used by different escrow agents.
Technology Escrow:
Technology escrow functions similar to software escrow except that subject matter to be deposited in an escrow could be Technological drawings, formulas etc. Companies could use a technology escrow for anything from Heart Valve Prototypes to Chemical Reactor Drawings.
Escrows are popular and very widely used by licensees in the west especially in USA, U.K and Europe. In India the concept of escrows is yet to sink in, one crucial reason was the absence of an escrow service provider, however even that void has been filled with the emergence of EscrowTech India.
EscrowTech India is an Indo-US joint venture company with EscrowTech International Inc. USA, one of the world’s most trusted software escrow agents.
For information on software & technology escrows log onto www.escrowtech.in or mail info@escrowtech.in
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment