Escrow is a tool for

risk management

The more business-critical a process is, the more important it is to protect it from failure.

Escrow Lowers Investment Risks

Escrow offers you new perspectives when investing in knowledge-based products and systems

Buyers and users of software, machines, ATMs, real estate etc. require security for their investments and continuity in product use, especially in business-critical segments.

While escrow services like PayPal are known for facilitating the exchange of goods for money, the term “technology escrow” stands for services used to reduce investment risks in knowledge-based products. When a product is delivered or technical systems are put into place, usually the buyer does not receive all the components necessary for maintaining the product or system. In many cases, maintenance is performed by the supplier. Should the manufacturer or supplier go out of business, the buyer may not have the knowledge or components needed to keep the product in use.

To avoid such situations, data required to ensure continued use of a product should be placed in escrow.

A professional technology escrow contract provides:

  • Security for your investment
  • Continuity of product use
  • Independence from the economic development of the manufacturer
  • Protection of the manufacturer’s trade secrets, whose products thus become more attractive to investors

As trustee, the escrow agency protects and represents the interests of all stakeholders.

What is software escrow?

Escrow places investment security with the product and not with the manufacturer. The software user no longer depends on the manufacturer’s financial development because the source code is held in trust.  However, the escrow contract gives the user access to the source code only in strictly defined situations.