WHAT CAN GO WRONG WITH ESCROW—AND HOW TO AVOID IT
Traditional source code escrow methods have significant drawbacks which have led to a poor perception of the practice. We agree.
Through our verification services we know that over 90% of existing source code escrow deposits fail. That usually means there is not enough information and source code in the deposit to create a working system. In short it could never work.
From our last 5 years of verification operations, here are some of the most common problems we find in existing escrows:
Equally important is the source code escrow agreement itself. Many agreements are poorly constructed and expose the licensee and licensor to unnecessary conditions or risks. Even worse, the source code may be in escrow but the release conditions or other elements of the agreement render it useless or put the vendor at higher risk by triggering the agreement.
HOW THE APPS GLOBAL SOLUTION SOLVES THESE PROBLEMS
Most escrow agents simply offer storage of source code in safes or vaults and are staffed by non-technical people. APPS Global is a technology-enabled escrow agent. That means we have software engineers and technologists on staff to help create escrow deposits at an acceptable level of release readiness for both parties. APPS Global’s Advanced Escrow Service includes a purpose designed 10 point verification process to raise the basic standard of deposits and an Advanced Escrow Platform that gives a build-on-demand capability for maximum protection and can also manage the complete lifecycle of one or a complete portfolio of source code escrows.
At the same time APPS Global's Master Escrow Agreement provides a comprehensive definition of release conditions that protects both the vendor and the buyer.
Next, learn about what a buyer needs to know.
If you are interested in Escrow
Then you may also be interested in other services from AIIA.biz that help mitigate risk and protect your investment in technology, such as Insurance and Intellectual Property.