Is Open Source Escrow for you?
Oct 14, 2010

Have you given up on Traditional Software Escrow and/or SaaS Escrow due to price and complexity of executing multi-party agreements on low priced SaaS offerings?

Before you give up, have you considered Open Source Escrow?

What is Open Source Escrow?
Open Source Escrow is a new concept for Intellectual Property Escrow that releases the Escrow materials to Open Source instead of specific Licensee(s). It is significantly cheaper then traditional escrow. It also simplifies the Escrow Agreement by eliminating the need to get involved in complicated contracts and negotiations, or adding clients to a list of beneficiaries.

How does it work?
The release triggers in Open Source Escrow are limited to closure or bankruptcy of the developer. While this trigger can be defined a little differently in each instance, the overall concept is that Open Source Escrow is designed to protect the end user from a developer that goes out of business or abandons the application

The escrow agreement in Open Source Escrow only includes the developer and covers everyone that uses the application. In Open Source Escrow only the developer signs the contract, and there is no beneficiary list. Since the code is released as open source there is no limit to who can receive the code if the developer goes out of business.

Who should use it?
Any application providers whose software is based on a foundation of Open Source code or low cost SaaS providers with a large install customer bases of small and medium size companies.

Advantages:
The agreements are much simpler and the cost is significantly lower.

What are the shortfalls?
Since the license is replaced with an open source license. This means that there are no restrictions on how the code can be used by anyone that receives the code out of escrow.

Is open source escrow of interest to you? Would it be a benefit to your business model?  Want to discuss if it is the right solution for you? Have you had a positive or negative experience with SaaS/Software Escrow in general?  Contact us or leave a comment.

Posted By Ashif Dhanani |




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