Technology escrow, or software escrow, is the safety net for your innovative IP and business continuity. When writing for online Newsfeed, LEXOLOGY, Davies Collison Cave says,
“Innovation is arguably the most important means of staying competitive in the market place. One way to keep that competitive advantage is to protect the intellectual property (IP) behind these innovations so as to prevent competitors from using them.
In fact, studies reveal that intangible assets, including patents and trademarks, now account for over 80% of a company’s value, a vast change from 20% in the 1970’s. And for start up companies, which amass IP during early stages of development, that figure is likely to be in the order of 90%. In a world where so much of a company’s value is tied to its IP, the management of IP must therefore become a core competence for any aspiring business.”
Software Escrow for Business Continuity
Most businesses depend on software over which they have limited or no control – and, without an escrow agreement they will very seldom have access to maintainable code for the software product – a major problem that otherwise could present itself only once it is too late to take action.
From an Operational Risk Management perspective, a Software Escrow arrangement is the only practical way to ensure access to maintainable information systems, for the software end-user, whereby they can be assured:
- Irrespective of the stability or commercial status of the software owner/supplier;
- If certain predefined commitments such as warranty, support and maintenance are discontinued and/or not honoured.
Risk management and internal audit practitioners are now asking “what are our annual revenue values, reputational credentials etc that are dependent on Information Technology Platforms over which we have little or no control?”
“ Software escrow is a smart and effective component of a business continuity strategy that software licensees can use to protect their mission critical applications in an ever-changing environment.”
Align your Business Continuity and IP Strategies with Technology Escrow from ESCROWSURE
Link to blog: what is software escrow