Consequences Of Inconsistent Source Code Escrow Agreements

The development of increasingly sophisticated software has prompted the emergence of a distinct subset of escrow agreements known as source code escrow agreements. These agreements are tailored towards the safekeeping of source code — the human-readable series of commands at the foundation of every software program.

Parties entering into software development agreements nowadays invariably also consider entering into separate arrangements with reputable source code escrow agents. There are certain benefits to be gained. For instance, in the event that contractual relations break down, and the party who has commissioned the development of bespoke software (Customer) has to engage an alternative software developer (Supplier) to carry on works, the Customer will have a contractual means of accessing the source code to enable the new Supplier to perform the necessary work.