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The Intellectual Property StrategistKickerFeaturesSectionsNewsLJN Newsletters

Integrating Software Escrows into Intellectual Property Strategy

By Rajiv Patel
March 01, 2006

Software developers invest a great deal of time and effort developing complex code that performs unique functionality for which there is a viable market. These software developers typically offer software licenses that only license object code, ie, the code that can be read by a machine, rather than the source code, ie, code that can be deciphered and read by a person.

Companies often invest in software developed by these developers. To protect this investment, a company may seek to acquire all rights to the developed software. Where they cannot acquire the software, they typically license the software from the software developer. In some instances, this causes tension between the software developer's desire to keep source code confidential and out of the hands of the licensee and others who may gain possession of, or knowledge about, the source code, and the licensee's desire to have access to the source code in the event that the software is no longer available at agreed upon levels of service.

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