A transaction between two parties can be mediated by what you call an escrow agent; escrow on the other hand refers to an agreement made by two parties who entrust their valuables to the escrow agent. The valuables could be in a form of intellectual property, documents or money. The items that the agent is keeping will be protected until certain instructions are given to them. A software is believed to be in escrow if the source code of a particular file is protected by a third party or the escrow agent. The agency that has plans in using the software can as the agents to keep the software. In other words the main purpose of having a software escrow service is to protect both parties involve in a software license.
A programmer can only make a program if they have with them their source code. If the source code is transferable and can be performed in other programs then you can simply obtain the source code and install it in your device. For those who have some knowledge in software executable source code will be able to devise an application they can call their own. If there is any breach of contract that the software developers made like bankruptcy and inability to update their software then it is possible for clients to gain access with the source code of their software through the escrow agent.
There are a number of individuals nowadays who are a victim of fraud and deception. Most of the time these transactions involve substantial amount of money. With the help of an escrow contract, buyers of particular software are protected and far from danger, this is even better since there is an involvement of source code and software. As of today, more and more people create programs and software that are sold in the market and clients should know that there is already a safer way to purchase and that is through an escrow agreement.
This type of agreement is not just beneficial to clients but also to the makers of the software. Having your own software is not as easy as you think this will require a lot of time, money and effort on your part which is why entering in some kind of agreement is very essential. The software escrow agent will serve as the mediator of the licensee and the licensor not only they will mediate the transaction but also do all the necessary things for the agreement. If there are certain terms that are violated in the agreement, the escrow agent has the right to perform appropriate action base on the contract or agreement.