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Software Escrow No Longer Required

Picture of a lock box, symbolizing software escrowSoftware escrow requirements once were common in my law practice. In this post, I will explain why that no longer is the case.

I have seen such arrangements principally with respect to software that a developer hosts (software as a service – SaaS). In a software escrow, the developer delivers a copy of the software’s source code to an escrow company. The developer provides updated versions of the source code from time to time.

If the developer goes out of business, the escrow company delivers the source code to the developer’s licensee (customer). The licensee then has the right to use and modify the source code for its own internal purposes. (more…)