Escrow

In ICT, it regularly happens that the ICT supplier and ICT customer conclude an escrow agreement. With an escrow agreement, parties agree on an arrangement for the continuity of automation within a company or organization.

In a classic escrow agreement, it is often agreed that the source codes of software and all associated technical documentation are stored in a safe place. The deposited source codes and documentation are regularly checked for usability and completeness. In the event of bankruptcy or another “triggering event”, the escrow arrangement ensures that the source code is kept in custody for the benefit of the ICT customer.

The source code is then issued when the ICT customer needs the source code to guarantee continuous use. In the case of SaaS contracts or a cloud service, additional agreements are often made that specifically take these situations into account.