Necessity of Escrow
As the continued operation and maintenance of custom software is critical to many companies, they usually desire to make sure that it continues even if the licensor becomes unable to do so, such as because of bankruptcy. This is most easily achieved by obtaining a copy of the up-to-date source code. The licensor, however, will often be unwilling to agree to this, as the source code will generally represent one of their most closely guarded trade secrets.
As a solution to this conflict of interest, source code escrow ensures that the licensee obtains access to the source code only when the maintenance of the software cannot otherwise be assured, as defined in contractually agreed-upon conditions.
Read more about this topic: Source Code Escrow
Famous quotes containing the words necessity of and/or necessity:
“The necessity of labor and conversation with many men and things to the scholar is rarely well remembered.”
—Henry David Thoreau (1817–1862)
“Private property is held sacred in all good governments, and particularly in our own. Yet shall the fear of invading it prevent a general from marching his army over a cornfield or burning a house which protects the enemy? A thousand other instances might be cited to show that laws must sometimes be silent when necessity speaks.”
—Andrew Jackson (1767–1845)