Technology escrow is a risk mitigation tool that is used during the acquisition of a “distributed” mission critical software application. Technology escrow is a term or phrase that is interchangeable with software source code escrow, source code escrow or even intellectual property escrow. Technology escrow is used by the software owner and the software user when entering an intellectual property, software or technology license agreement. Software owners and software users use a technology escrow agreement for various reasons.
For example, the software owner wants to make their customers to feel confident that if a pre-determined event should take place, such as breach of contract, bankruptcy, sale or sunset, the software user would have access to the source code and related technology so they can keep the application up and running and avoid downtime and avert a disaster. InnovaSafe is a trusted neutral third party which is independent of the transaction and is used to implement and administer a technology escrow agreement.
What can be deposited? Our clients use us to store all kinds of stuff. For example, we hold software source code, formulas, recipes, databases, firmware, hardware, and even a mask. If it is intellectual property InnovaSafe will hold it. Generally, any and all intellectual property that needs to be held by a designated third party can be protected by a technology escrow.