What is software escrow?
Software Escrow, also known as source code escrow, is a three-party agreement that secures access to a vendor’s source code and other key materials, only released if specific conditions occur, such as vendor failure.
Why do businesses use software escrow?
To manage third-party risk and ensure continuity if a vendor can’t deliver. Protecting your investment in critical services, supporting compliance, and strengthening your business continuity strategy.
When should I consider escrow?
If you rely on third-party or custom-built software that’s critical to operations, escrow helps protect that dependency.
Who’s involved in a Software Escrow Agreement?
The licensee (software user), the vendor (software provider), and Escode as the independent third-party escrow agent are involved in a Software Escrow Agreement.
How long does it take to set up an agreement?
It can take as little as one day, depending on the complexity of the technical and legal process.
How does escrow support business continuity?
It provides a documented, tested business continuity plan and ensures access to essential resources to maintain operations if something goes wrong with the vendor.
How does escrow support regulatory compliance?
Escrow helps meet regulatory requirements like PRA SS2/21, FFIEC, and APRA CPS 230 by ensuring access to critical software assets during vendor disruptions. It also provides a clear, documented process for audits, helping you demonstrate compliance.
