Technology Escrow What does it mean and why is it used?
What to look for...
Technology escrow is a risk mitigation tool that is used during the acquisition of a “distributed” mission critical software application. Technology escrow is a term or phrase that is interchangeable with software source code escrow, source code escrow or even intellectual property escrow. Technology escrow is used by the software owner and the software user when entering an intellectual property, software or technology license agreement. Software owners and software users use a technology escrow agreement for various reasons.
For example, the software owner wants to make their customers to feel confident that if a pre-determined event should take place, such as breach of contract, bankruptcy, sale or sunset, the software user would have access to the source code and related technology so they can keep the application up and running and avoid downtime and avert a disaster. InnovaSafe is a trusted neutral third party which is independent of the transaction and is used to implement and administer a technology escrow agreement.
What can be deposited? Our clients use us to store all kinds of stuff. For example, we hold software source code, formulas, recipes, databases, firmware, hardware, and even a mask. If it is intellectual property InnovaSafe will hold it. Generally, any and all intellectual property that needs to be held by a designated third party can be protected by a technology escrow.
InnovaSafe is SOC Type II Compliant and provides the following: (i) a secure web based client portal for account management; and (ii) secure storage of all IP which is processed using standard chain-of-custody protocols. Our deposit in-bound and deposit return process is secure “end to end”.
Currently, we are witnessing, more than ever, software owners deploying their applications using the Software-as-a-Service aka SaaS model. A SaaS mission critical application requires a SaaS Escrow as much or even more than a distributed supplication, because the software user aka “subscriber” never takes possession of the actual software. Access and use of the application is all completed via the internet. The application is stored or hosted on computer servers that may or may not be owned by the software owner aka “provider”. This is a recipe for a real-time disaster. To protect against down-time which can cripple any company both the SaaS provider and the SaaS subscriber look to InnovaSafe to provide a cost effective solution that will allow a disaster to be averted by providing immediate access to the application and or data.
At the end of the day, technology escrow allows both the owners and users to rest easy knowing that if something should occur they have protection against a disaster.