What is Source Code Escrow?

Source code escrow is the process of securely storing a software’s source code, documentation, and dependencies with a trusted third party like Escode. The source code held in Escrow is updated at agreed timeframes, as detailed in the escrow agreement, ensuring it remains current and accessible when needed. If the vendor fails to meet their obligations, and a release condition in the escrow agreement is triggered, such as discontinuing support or going out of business, the licensee gains immediate access to the materials.

Alternatives to source code escrow, such as open-source software, in-house development, or vendor redundancy strategies, come with significant risks. Open-source software lacks dedicated support and security, making it unreliable for critical operations. In-house development requires substantial time, expertise, and cost, which many businesses can’t sustain. Vendor redundancy can be complex and costly, with no guarantee of seamless transition. Unlike these options, Escode’s source code escrow services provide a legally backed, secure solution that ensures guaranteed access to your software’s source code when you need it most.

The primary purpose of source code escrow is to protect businesses from vendor failure, ensuring continued access to critical software. Without escrow, companies risk losing control if a vendor shuts down or discontinues support. Escode’s source code escrow services provide a legally backed safety net, ensuring business continuity, protecting software investments, and securing intellectual property throughout development and beyond.

Any business that relies on third-party software can benefit from source code escrow. It’s essential for regulated industries, enterprises with mission-critical software, and companies that need to mitigate vendor risks.

Setting up a source code escrow agreement with Escode is simple. We work with you and your vendor to define the terms, ensuring clear conditions for code release. Once the agreement is in place, the source code is securely deposited in escrow and can be verified for completeness. Our in-house legal and technical teams provide expert support each step of the way, providing a seamless, legally backed solution to protect your business and software investments.

A code escrow deposit should include the complete source code, build instructions, configuration files, third-party dependencies, and documentation needed to maintain and deploy the software. Escode’s source code escrow services provide verification to ensure the deposit is complete, functional, and accessible. Our in-house technical experts can validate the materials, perform test builds, and confirm usability, so the licensee is prepared if vendor issues arise.