In most forms of work, certain pieces of software can prove absolutely vital. They provide an important link in productivity and without them businesses would not be able to work.

As such, it helps to know how to protect yourself against any risks involved with such software. It helps to understand how software works from a legal standpoint, and how risk to your productivity can then be mitigated by escrow. This can come in many forms but, in this article we will focus on the likes of software escrow. Here are a few things to consider from specialists Escrow Associates.

Software as a Service (SaaS)

The main problem with software is:

  • You don’t own it personally
  • You can’t access the internal source code to make any changes or access the product directly.

(This is due to ‘Software as a Service’ otherwise known as SaaS)

When you purchase software, you are:

  • Purchasing a license to use it.
  • The actual product still belongs to the provider.
  • Installation typically involves agreeing to an ‘end user agreement‘.
  • This agreement ensures each party has their own rights.
  • You don’t own the product, but it’s up to the provider to maintain a working, effective product for you instead.


Of course, the legal complications often arise when this agreement isn’t being met. If you feel the end user agreement is invalid, it can be a complicated legal process to claim what you are rightfully now entitled to; the source code or other relevant data.

When you’re working, this can be a waste of:

  • Time.
  • Resources.
  • Profit.

This is where escrow proves invaluable. By putting the materials in question into a safe escrow account, both parties are aware of what could happen; in the case of such a dispute, the escrow holder can determine who is right from a legal, neutral stand point. Should you be granted access, they have the power to do so.

Trust and reassurance

That said, in many cases, it often doesn’t get that far. Using escrow shows a developers sign of commitment. For instance, it’s often better to choose a company that is willing to do so. Such code if often invaluable to the company’s success; a provider willing to put this on the line must have a serious level of commitment when it comes to providing a reliable product.


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