What are the advantages of escrow agreements for an end-user?
End-users do not have access to the source code or other proprietary materials needed or useful for maintaining, updating or enhancing the software, and therefore is dependent upon a Vendor to maintain, update and enhance the software.
If the Vendor goes out of business, or fails to maintain, update or enhance the software, the End-user may suffer significant interruption of their business.
As a beneficiary to the Escrow Services Agreement, the End-user will receive the Deposit Materials if a Release Event occurs and will have the right to use them (in accordance with permitted use guidelines) to maintain, update and enhance the software.
An End-user’s business may depend on software licensed from a Vendor. A knowledgeable end-user would be concerned about timely maintenance of the software to correct programming errors and about updating or enhancement of the software to meet the End-user’s changing needs.