Emergent solutions to common security concerns
Escrows aren’t just for home mortgages. In these troubled and uncertain times, more security is required in business. With COVID-19 dominating both the news cycle and our daily lives, we need to maintain vigilance in our businesses regarding overall security. Protecting intellectual property in addition to assets and proprietary software is a common concern and key to maintaining a solid business model.
Companies license and implement business-critical custom software every day. Utilizing escrow software is like putting your software code into a vault. It can be likened to putting your money in an insured bank for safekeeping. It is a sound business solution for peace of mind. It means that your source code is secure if the contracted IT company goes out of business, a key employee leaves or passes away, or they abandon their contractual responsibility with your company.
Here is a helpful two-minute escrow software explanation:
The benefits of a software escrow agreement go beyond the scope of just source code protection. It shows potential investors that your business and its code are secure and protected. Additionally, your code is verified so that you can keep your eye on the day-to-day tasks of running and scaling your business to new heights and increased profitability. This agreement allows a neutral third-party to ensure that your company can maintain its product. Escrow software mitigates concerns regarding the disruption of necessary software in daily operations and the training of personnel and the support of the software.
On the other end of the spectrum are escrow agreements for developers. Having this resource can put smaller developers on the same playing field as larger companies. It shows that your source code is secure, and your business model is sound for those ready to engage your services. Companies looking to purchase your source code will have greater comfort in doing business with you since your source code is ensured for maintenance, continued updates, and security in general. On a grander scale is the surety that this tactic will secure your intellectual property as well as the copyright of ownership.
When looking for a reliable escrow software company, consider the following: an international presence to assist growth and scope of a business, ease and availability of support, expertise in both legal and technical arenas in addition to continuity of best practices and recognized certifications.
According to The National Law Review, software escrow agreements can be invaluable to your business model when engaging with complex technology contracts. It is important to note that such contracts may deal with licensing a commercial product, a specific SaaS service, or another technology service or product. Such tools can help avoid legal entanglements should licensing or code origination be called into question.
At the end of the day, whether you are a small developer or a large business – the risks of not engaging in an escrow software company far outweigh the cost of protecting both your proprietary source code as well as your reputation and the security of your future.
