Can We Do Without Escrow Technology?While licensing software, or other technology, the IT, procurement and the legal department need to address increased regulatory compliance pressures to ensure protection of strategic assets. This is where the escrow technology, or the escrow for technology, comes in handy. Though escrow is typically a term used in real estate, it is also used for technology. Escrow technology is a smart and effective part of business strategy. In a constantly evolving environment, it is certainly essential that it is used by technology licensees to protect their mission critical applications. . Escrow is generally looked upon as an insurance policy to make sure that you have access to the source code. This is particularly useful at times when the vendor is no longer maintaining the technology for your organization. An escrow would give an effective alternative in such cases. Risk is an inherent factor of every technology license agreement. Companies, which supply and demand technology, also have to keep up with the fast changing markets. Such uncertainty calls for adequate protection. Therefore, it is very important, while setting up an escrow agreement, to ensure that it gives the customer the rights required to maintain source code. Technology escrow is simply a great way to maintain and protect software source codes, and other intellectual property assets. Escrow agreements are particularly popular when it comes to software licensing transactions. The technology industry has grown over the years. Also better providers have evolved and brought important innovations to the industry. They have also gained technical expertise to perform tests on escrow deposits in order to ensure that they are completed and accurate. Some of the top escrow agents have incorporated technology that allows the involved parties to both manage and monitor their accounts. This is made possible through web-based tools. Escrow deposits can also be made electronically through FTP sites depending on the agent. Technology vendors also put escrow agreements in place in order to eliminate client concerns with regard to working with groups. This is usually common with groups which are not very well established in terms of years in business or financial assets. A vendor's willing entry into an escrow agreement signifies their professionalism. It also shows their commitment to the market place as well as the end user. Software and technology escrow agreements can be further customized to provide protection for any form of intellectual property. Some examples include: source codes, hardware designs, manufacturing and chemical processes, lists of customers, recipes, domain names, and the contact information of important employees. Therefore, escrow technology is the best option when a government entity, company, or organization is dependent upon technology for critical applications. The escrow helps reduce any associated risk. Certainly, escrow technology is very significant, and useful for the technology- dominated world. The world cannot do without it. |