Professionalism. Your customers’ biggest fear is that one day, you won’t be around to maintain the software. An escrow arrangement will show your customers that you are concerned about and looking out for their interests. An escrow arrangement will give your customers peace of mind.
Collateral. Third party banks or lenders usually need collateral that is identfiable, transferrable and accesible. Use your work as collateral by putting your source code in escrow.
Documentation. As a developer, you may sometimes write code with other developers or manufacturers. Well-documented source code in escrow will clearly show which part of the code belongs to you.
Intellectual Property Protection. Your source code is your intellectual property. Your source code in escrow will be an independent source of corroborating evidence that unequivocally proves what you created and when you created it.
Trade-Secret Protection. If an employee leaves the company, you don’t want your best-kept secrets and confidential information to leave with them. Putting your source code and other trade secrets in escrow can prove exactly what you intended to keep confidential and what you desired to protect.
Support & Maintenance Protection. Customized software is expensive, yet indispensible. Ideally, you would count on your software developer to provide software maintenance and support. But what happens when your software developer can no longer provide such services? Whatever the reason, an escrow arrangement will grant you, as the software customer and licensee, access to the source code so that you can continue to operate and maintain this vital and expensive asset.
Peace of Mind. At any time, you may want to double-check to make sure that the source code in escrow is actually what it is. An escrow arrangement will allow you to verify - at your convenience - that the software works and that it is compliant with your requirements.
Protection for Clients. Whether your clients are software developers or software customers, you will want to advise your clients to protect themselves with an escrow arrangement. It’s the right thing to do.
Trusted Agent for Clients. SCEC has negotiated escrow agreements with counsel from many of the top law firms in Canada. As lawyers ourselves, we are committed to responding promptly and knowledgeably. A significant portion of our business comes to us through referrals from legal counsel we have worked with in the past.