What is software escrow?

An escrow of a (software) source code with a neutral third party (the escrow agency). When licensing software, experience has shown that a wide array of potential points of friction can arise between software developers and their customers (the users). Opinions are often divided once it comes to disclosing the source code, if not earlier. This conflict of interest, which is so typical for the software industry, can be avoided by a so-called escrow agency – an independent trustee with technological expertise who deposits the source code neutrally for both parties.