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What is software / source code escrow?
Who pays the escrow agent?
How do we know the deposit materials are complete and accurate?
How is Escrow Associates different from other escrow agents?
Where do you store the escrow deposit?
What is a media vault?
Why is it important to use a media vault for the storage of escrow deposits?
Can we use our attorney (banks or some other "casual agent") as the escrow agent?
What are the release conditions?
What can be placed into an escrow account?
We already have a software escrow agent. Can Escrow Associates administer our terms?


What is software / source code escrow?
Software and source code escrow are the same thing. With software escrow a licensee requires source code to be stored with an escrow agent during the term of a license, support or other agreement. Licensees use source code escrow services to protect against a disruption in support of mission critical technologies due to vendor failures.


Who pays the escrow agent?
As your software escrow agent, Escrow Associates can invoice either the developer or beneficiary for the escrow fees. In two-party escrow agreements it is common for the developer to pay the escrow agent and invoice their clients who participate in the escrow program. Since three-party escrow agreements are strictly for the benefit of a single beneficiary the beneficiary typically pays all escrow fees.


How do we know the deposit materials are complete and accurate?
Escrow Associates provides "turn key" Technical Verification services to determine if the deposit materials are complete and accurate. We can provide a list of possible deposit materials once we have a better understanding of each situation.


How is Escrow Associates different from other escrow agents?
Escrow Associates is the fastest growing provider of software and source code escrow services. Our principals offer decades of software and technology escrow experience and expertise. We cover the four key elements necessary to provide quality software and source code escrow services and we excel in each area:
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Facilities - Electronic media must be handled and stored appropriately to protect and preserve the media so that it can be used in a time of need to support the application. Escrow Associates provides state of the art media vault storage in the US, UK & Canada.
Escrow Experience - We have negotiated thousands of escrow contracts with many of the leading technology companies and law firms throughout the world.
Escrow Service - Escrow Associates is committed to providing the most responsive and professional services in the industry. We provide "same day" response time upon request for agreement executions, beneficiary enrollments, notification letters and more.
Escrow Agreement - Our agreements provide the utmost flexibility with regards to initial structure and long-term usability. When you work with us, there are no proprietary terms that will hinder flexibility or require separate agreements depending upon your release conditions. |
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Where do you store the escrow deposit?
Escrow Associates utilizes only state of the art media vault facilities to store escrow deposits. We provide state of the art media vault storage in the US, UK & Canada - so our clients can rely on us for all escrow of their requirements worldwide.


What is a media vault?
A media vault is a storage facility that is designed and constructed specifically for the storage and preservation of electronic media. These facilities are designed to withstand fire for up to four hours without allowing internal temperatures to rise significantly. Our media vaults are equipped with devices that monitor and control humidity and temperature to the exact levels determined to best preserve electronic media.


Why is it important to use a media vault for the storage of escrow deposits?
Software and source code escrow agreements are a good part of any business continuance plan. Since the deposit materials are often not utilized for several years after the initial deposit was made, the storage and preservation is critical in preserving the value of the escrow deposit.


Can we use our attorney (banks or some other "casual agent") as the escrow agent?
As the technology escrow industry has evolved over time there are four critical characteristics to technology escrow services that have emerged as prime considerations in selecting an escrow agent:
• Escrow Contract
• Storage of the escrow deposit
• Services / Information
• Neutral Third Party
Below are a few examples of the shortcomings of "casual escrow agents":
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Attorneys - Typically attorneys have strong knowledge of the contracts and may be able to provide account information as needed. However, law firms typically lack the proper storage facilities and requisite experience in handling electronic media.
Banks - Banks are often considered as escrow agents because of their vault facilities. But bank vaults are not designed to store electronic media and banking industry employees typically have no training in this area. Further, their employees are not trained to handle electronic media. |
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What are the release conditions?
Escrow release conditions are the scenarios in which a release of the escrow deposit would be warranted. In some escrow agreements (i.e. domain name transfer, manufacturing escrow, etc.) the release is an inevitable part of the transaction. We can support a wide array of release conditions and we will work with you to draft an agreement that meets each escrow requirement.
Typical release conditions include:
• Bankruptcy of developer
• Total cessation of Developer's business
• Failure to support the terms of a license or support agreement
• Death of key personnel
• Developer's acquisition by a key competitor


What can be placed into an escrow account?
Escrow Associates has administered escrow agreements containing a wide array of deposit materials. Certainly the typical escrow deposit consists of software source code, documentation related to the build environment and instructions for use. However, many other types of intellectual and physical property can be placed into escrow as well.
Samples include but are not limited to:
• Computer / Networking Hardware
• Designs
• Domain Names
• Formulas
• Manufacturing plans / processes
• Customer & prospect lists
• Cash
Escrow Associates can help facilitate virtually any technology related transaction. Contact us today to discuss your situation.


We already have a software escrow agent. Can Escrow Associates administer our terms?
Yes. Many of our clients have transferred their existing escrow agreements to Escrow Associates to take advantage of our superior services and lower fees. The transfer process is simple and we can provide detailed instructions once we understand the details of your account. Contact us today to learn how easy it can be to start using our unsurpassed services.
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Industry Fact |
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Over 90% of all escrow deposits tested by verification require an update or addition to the materials that are in escrow in order for the source code to compile. |
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The average Escrow Associates employee has more than 4.25 years of software & technology escrow industry experience. |
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Testimonial [ view all ] |
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"Escrow Associates worked with me to make the escrow arrangement fit my client's needs. They were courteous, knowledgeable and timely in their responses. Highly recommended for third party escrow of technology and IP." |
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Chris Paradies, PhD
Shareholder
Fowler White Boggs Banker |
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