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.
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Famous quotes containing the words necessity of and/or necessity:
“This, indeed, has always been the fate of the few that have professed scepticism, that, when they have done what they can to discredit their senses, they find themselves, after all, under a necessity of trusting to them. Mr. Hume has been so candid as to acknowledge this; and it is no less true of those who have shewn the same candour; for I never heard that any sceptic runs his head against a post, or stepped into a kennel, because he did not believe his eyes.”
—Thomas Reid (1710–1796)
“To expect to increase prices and then to maintain them at a higher level by means of a plan which must of necessity increase production while decreasing consumption is to fly in the face of an economic law as well established as any law of nature.”
—Calvin Coolidge (1872–1933)