What are the specific benefits of escrow?
For the licensee, escrow provides investment protection for IT or other projects by covering any issue or failure on the part of the licensor. In the case of software escrow, for example, it enables the maintenance, servicing, and further development of the software by the licensee’s own employees or third parties.
For the licensor, they secure a competitive advantage through escrow and thereby increase the sales of their products. Furthermore, their intellectual property (IP) is protected.
For the general contractor, their credibility is strengthened with escrow by reducing existing risks that stem from a potential loss of a supplier. Through this, they can secure contracts and obligations entered into with customers.