Software Escrow

Software Escrow companies are a go between for businesses that use custom made Software and the Software Developing company that made that Software. Software Escrow companies set up an Escrow account to house the source code for software. In these situations the Beneficiary (business that is going to use the software), and the Software Developer both want to have possession of the source code of the software. The Beneficiary wants the source code to be able to maintain and enhance the software in case the Developer fails to maintain the license agreement in any way or go out of business. The Developer wants possession of the source code so they can continue to get maintenance revenue also they want to prevent another programmer or independent contractor from modifying the existing program and/or developing a competing program. Software Escrow companies hold the source code for both parties allowing both to have access to it only for prearranged and agreed upon reasons, i.e. the Beneficiary could get the source code from the Escrow company if the Developer went out of business.