Benefits of software escrow

By establishing an escrow, the software developer can address the concerns of his prospective client without exposing himself to the risks inherent in distributing source code and other proprietary materials to end-users.

Even under non-disclosure obligations, the proliferation of source code and other proprietary materials to end-users makes it difficult or impossible to ensure against eventual disclosure to competitors or loss of trade secret rights.

As a “developer/owner” to a software escrow, the software developer can make its software more marketable and can use the escrow as a selling point to prospective end users. Having an escrow already in place, can eliminate needless negotiation over source code rights and can prevent delays in getting the deal done.