Guard-IT Software Escrow: The Escrow Advisor

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Escrow Deposit Updates

Now that we have a proper escrow deposit in place, how often should it be updated?

The rule of thumb is at least after every new version of the software or technology is released to the public or the clientele. Some escrow agreements are written to specify monthly, quarterly or annual updates regardless of how often new versions are released, while others have no specific update schedule beyond new releases.

Timely and periodic updates to the Deposit Materials are important to both Developer and Licensee.

For the Developer, current updates ensure that the entire library or "anthology" of the technology product(s) is safely kept off-site, protected not only physically but also from an intellectual property
rights standpoint under the ownership terms of the Escrow Agreement. While escrow copies of Deposit Materials are not working backup copies, they could easily be retrieved from the Escrow Agent in the event of a total physical loss or catastrophe (e.g., fire, flood, etc.)
if the Developer has no other backup resources.

For most Licensees who consistently upgrade their technologies, a current escrow deposit would be the Developer's latest release. For Licensees who are happy with v. 2.0 and are not upgrading to v. 3.0 or 4.0, the older version in escrow would suffice. That's why it is important for Developers to submit all versions of the product to the Escrow Agent, for the benefit of themselves and their potentially diverse groups of Licensees.