In a software scenario there are normally two main parties involved; the software programmer/software company and the end-user or the company purchasing the software package. Escrow software is a means by which a third party is involved, called an software escrow agent, with the responsibility of holding the software source code.

Programmers write code in ‘object’ format which then gets compiled by the computer into ‘source’ format. Ultimately this code is then translated to ‘machine’ format which can be read by the computer’s hardware. Included with the software code is the documentation which is normally present.

The source code is the origin of the ultimate software application and has a value in the sense that without it the application cannot be executed properly. This code is not normally delivered to the end-user or client, but the part delivered is the executable part only.

To many programmers and developers, supplying the source code is a non-desirable option since they feel that they are exposing their hard work to anyone that can read the code. The client or end-user can easily supply the code to a third party which can then manipulate or change the code to develop something even more elaborate or to the worse, may make obsolete the original piece of code.

This is where the role of escrow software agents comes into. These agents are responsible for the security of the source code. Their role is to protect both the rights of the end-users as well as the technology present in the developer’s code.

End-User

Having an escrow software service, the user is guaranteed that the source code used for his business application can be available if anything had to happen to the programming organization or software developers. Anything can happen, from company insolvency to bankruptcy, or closure of business. By having escrow, the end-user is immune from these problems and in the case they actually occur, the source code can be utilized and handed over to other professional software companies who can continue in supporting the end-user.

Programmer/Developer

Two advantages can be highlighted for programmers. First, since the source code is escrowed, they can guarantee to the client that their high-cost investment is protected and not liable to any change of business they may encounter. Secondly, by escrow software, developers are assured that their proprietary assets found in the code are well protected from being copied and/or manipulated.