Know the elements to ensure that your escrow agreement is effective.
The key to a successful escrow agreement is in the contract language and the administration. Be aware of the major components of the contract, and ensure that each is attended to.
Here are three of the basics:
- Ensure your deposit contents are complete- If the deposit materials don’t include everything, you won’t be able to recreate your software application even with a release of the source code. Many deposits are sent in incomplete and require additional input from the developer in order to be compiled.
- Choose a verification plan- This provides assurance that, in the event of a deposit release, the licensee would be able to read, recreate and maintain the developer’s technology in-house.
- Confirm the rights to use following a release- As a licensee, make sure you have the right to modify and otherwise maintain the technology upon release. This should be included in both the license agreement and the escrow agreement.
As a final tip, always negotiate and sign the escrow agreement together with the license agreement.