Guard-IT Software Escrow: The Escrow Advisor

003

Verifying the Deposit Materials

Previously, we discussed what comprises a good escrow deposit and how often the Deposit Materials should be updated. However, incomplete files, damaged media, missing instructions, incorrect passwords and other pitfalls can hamper a Licensee's (Beneficiary's) recovery efforts, even with a well-written escrow agreement and
"current" escrow deposit.

"Ensuring the security of your intellectual property is essential to your company's long-term success. There's no major revelation in that," says Don Shafer, chief technology officer of Austin-based Athens Group. "Verifying that the code is intact, operational and error-free provides the extra reassurance you, your employees and your investors need. In these economic times, that reassurance can make all the difference."

Independent testing and technical verification of the Deposit Materials by professional software engineers gives Beneficiaries an extra measure of security while also providing a valuable inventory "cross-check" for the Developer.

Technical verification is a service option that is usually requested by and paid for by the Beneficiary. Levels of verification range from simple “acceptance testing”, which checks all files for proper inventory, viruses and readability, to comprehensive recompiling of the source code or system simulation and even on-site testing at the Beneficiary's
place of business.