source code escrow

source code escrow
USA
An arrangement between the licensor and a licensee of a computer software application in which the licensor deposits a copy of the application source code (and related technical components and documentation) with an independent escrow agent. The respective rights and obligations of the agent, licensor and licensee are set out in a three-party escrow agreement, which typically provides for the agent to release the source code to the licensee if and when a specified event occurs, such as the licensor becoming insolvent or defaulting on its maintenance obligations under the principal license agreement.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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