Agile solutions require targeted legal advice to match

Smaller technology businesses can often be more agile and cost-effective than bigger suppliers, but the users or customers may have a concern that the smaller company might not be around very long.

They may ask themselves if it will be safe to rely on that business. If it falls over or fails to deliver, what access will it have to maintain and develop the code behind the products?

The answer is often escrow – the deposit of computer source code with a trusted and effective third party which has the facilities for receiving and maintaining code. Tech companies usually feel safer with agreements in place to set out the circumstances in which the code can be released to the customer, and with the right resolution procedures.

Finding the right solution

Escrow is a good solution to enable customers to work with smaller, more effective software businesses. As escrow lawyers, we are used to advising and working on escrow situations and are familiar with escrow agreements.

As delivery models change, and as businesses themselves evolve, the right escrow model might also change, and one size won’t always fit all. We can advise you on escrow and adapt your agreement over time as needed.