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Avoiding Technology Pitfalls: How Software Escrow Can Protect Development Projects

BY Bea Strickland Wray
November 01, 2003

In the second of two articles on use of software escrow in e-commerce projects, we take a look at how to avoid some technology pitfalls.

The first article, in the August edition of e-Commerce Law & Strategy, provided an overview of software escrow, advantages of using it, and details on escrow agreements and partnerships.

To recap, software escrow means that the owner or vendor of software or Web site coding (the “licensor”) deposits the software source code with a third-party escrow agent. Escrow is typically requested by a party licensing software (the “licensee”) to ensure maintenance and updating of the software in the case of bankruptcy or breach of the licensing by the licensor. In this case, the escrow agent releases the code to the licensee.

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