Multi licensee escrow agreements are for COTS (Commercial off the shelf software) applications used by multiple users. Licensee can join the agreement only if he owns valid software license.

If a software supplier failed to carry on maintaining and supporting the application, any licensee registered under the agreement can apply for the source code to be released. They can then decide to continue maintaining the software in-house or appoint another software developer to do so.

Multiparty party Agreements are based on the one-to-many principle. The software supplier closes an escrow arrangement with Software Escrow after which it can offer escrow as standard or additional service to its end users. The software supplier is free to offer the escrow arrangement to all or a selective group of customers.

A user who participates in the arrangement receives from Software Escrow a written confirmation of its registration – the Escrow Certificate.

This agreement is especially interesting for standard applications, when multiple users ask for escrow during contract negotiations or when a supplier proactively wants to anticipate the requirements of its (future) clients.

Why Software Escrow

For supplier

  1. Scalable, long term solution – set up once for all clients
  2. Maximum freedom to optimally use an escrow arrangement
  3. Prevent legal discussions with every new contract
  4. Easy accessible to parties

For User

  1. Beneficiaries of an Software Escrow agreement are ensured of a quality escrow arrangement with a high level of service
  2. Always a written confirmation of registration
  3. Operational status available online but account manager available when required
  4. Optional module which enables parties to meet specific wishes of a user – for example to add customization for a special user to the escrow deposit

All obligations of the software supplier, Software Escrow and rights of the licensees are included in a transparent escrow contract. This contract is used to create the General Terms of the escrow arrangement which then functions as a legally binding document between the licensor and licensee. A licensee who wishes to join the escrow arrangement endorses these General Terms.

Our Solutions:

Multiple Licensor Single Beneficiary Escrow

This agreement is a two party agreement between Software Escrow and the Beneficiary. Any number of licensors may be added to this agreement.

MLSBDescription

The Multiple Licensors – Single Beneficiary “ML-SB” Software Escrow Agreement is a two party agreement between the Beneficiary and Software Escrow. Any number of Licensors may be added to this agreement at any time. This is a full-service escrow. This software escrow is designed for corporate sized Beneficiaries who have a need to escrow the source code for multiple products from various licensors. This type of agreement should be used in the following situation:

  • There is exactly one Beneficiary
  • There is any number of Licensors

How the ML-SB Escrow Works

A Multiple Licensors – Single Beneficiary Software Escrow begins with the Beneficiary and Software Escrow signing the Software Escrow Agreement. This agreement outlines the details of the Software Escrow. Licensors are then added to this agreement via the Licensor Registration Form. This form allows for customization on a per Licensor basis for important variables such as:

  • The Release Conditions (what must occur for the Deposit Materials to be released to the Beneficiary).
  • The Permitted Use (what the Beneficiary can do with the Deposit Materials).

Once the Software Escrow Agreement is established, the Licensors then submit the Deposit Materials to Software Escrow. If a Release Condition occurs, then Software Escrow releases the deposit materials to the Beneficiary.

Multiple Beneficiaries Software Escrow 

This agreement is a two party agreement between Software Escrow and the Owner. Any number of Beneficiaries may be added to this agreement. Typically, any escrow deposit made under this agreement will apply to all Beneficiaries.

MB
Description

The Multiple Beneficiaries “MB” Software Escrow Agreement is a two party agreement between the Owner (licensor) and Software Escrow. Any number of Beneficiaries may be added to this agreement at any time. This is a full-service escrow. This type of agreement should be used in the following situation:

  • There is exactly one Owner.
  • There is any number of Beneficiaries. i.e. more beneficiaries can be added.
  • The Beneficiaries all share the same deposit materials.

How the Multiple Beneficiaries Escrow Works?

  • A Multiple Beneficiaries Software Escrow begins with the Owner and Software Escrow signing the Software Escrow Agreement. This agreement outlines the basics of the Software Escrow. Beneficiaries are then added to this agreement. This form allows for customization on a per Beneficiary basis for important variables such as:
  • The Release Conditions (what must occur for the Deposit Materials to be released to the Beneficiary).
  • The Permitted Use (what the Beneficiary can do with the Deposit Materials).
  • Once the Software Escrow Agreement is established, the Owner then submits the Deposit Materials to Software Escrow. If a Release Condition occurs, then Software Escrow releases the deposit materials to the Beneficiary.