Software Escrow

Software Escrow was introduced approximately 20 years and originates from the United States. In the past, a Software Escrow was merely the physical storage of the source code in a vault by a TTP (Trusted Third party). The aim is that the source code remain available even if the supplier no longer exists



At Escrow Europe, a Software Escrow is a arrangement providing technology users the assurance of access to verified source code and associated documentation. The release grounds are contractually determined. Thanks to proven verifications methods, the source code can be analysed to ensure a high level of guarantee. Escrow Europe initiates - in accordance with the agreed frequency - the active follow-up of deposits of updates and new releases; thus to safeguard that the materials in deposit are current.

Software Escrow is of interest for all companies and organisations using business critical software. If other words, software which is important for the business continuity such as tailor made enterprise software. The intellectual property rights of the products remain unimpaired with the supplier's.

The escrow contract is the starting point of every escrow arrangement. Before materials can be provided or verification can commence, all parties involved need to reach an agreement on many imperative matters. Such as: a) who are the parties (supplier, beneficiary and Escrow Europe), b) what is being deposited, c) which verification level, d) what are the release grounds, e) how many updates are deposited per year, f) what happens when parties do not stick the agreement.

There are two types of Software Escrow agreements:
3-Party agreement
This agreement is intended for one user as the only beneficiary. The agreement is closed between supplier, one user and Escrow Europe.

2-Party frame-agreement
This is an agreement between supplier and Escrow Europe. All licensees/users of the software supplier automatically become a beneficiary of the escrow contract