Frequently Asked Questions
IT Escrow is a contractual arrangement in which a trusted third party, known as an Escrow Agent, holds and protects the source code, data, and other critical assets of software or technology, ensuring their availability in case of specific trigger events.
IT Escrow kicks in in case of very specific events, also known as Trigger Events. Common trigger events in IT Escrow include bankruptcy or insolvency of the software vendor, the vendor's failure to maintain or support the software, or any other predefined events agreed upon in the Escrow Agreement.
IT Escrow provides businesses a safety net, ensuring that they have access to the source code, data, and other vital assets of their software or technology, even if the software vendor faces financial or operational challenges. It helps mitigate the risks associated with vendor dependency and ensures business continuity.
The parties involved in an IT Escrow Arrangement typically include the software vendor, the licensee (customer), and the Escrow Agent. The Escrow Agent is a neutral third party responsible for safeguarding the Escrowed materials and releasing them to the licensee under specific conditions.
The materials placed in IT Escrow can vary, depending on the agreement, but usually include the source code, documentation, executables, databases, and other necessary components to maintain and support the software or technology.
The release of Escrow materials occurs when a trigger event, specified in the Escrow Agreement, takes place. The Escrow Agent verifies the occurrence of the trigger event and releases the Escrowed materials to the licensee, enabling them to continue using and maintaining their software.
Generally, the licensee can access the Escrowed materials only when a trigger event, specified in the Escrow Agreement, has occurred. The purpose of IT Escrow is to provide a safety net in exceptional circumstances rather than granting unrestricted access to the materials.
It is recommended to review the IT Escrow agreement periodically, typically during contract renewals or when there are significant changes in the software, vendor, or business requirements. Regular reviews ensure that the Escrow Agreement remains up to date and aligned with the evolving needs of the parties involved.
Spire Solutions™ and Spire Escrow are separate entities, with Spire Solutions™ being an Ltd company that provides software solutions and Spire Escrow being a Foundation that offers IT Escrow Services. The separation ensures independence and neutrality in the management of Escrow Arrangements. While Spire Escrow provides services to various software companies, including Spire Ltd, it is not mandatory to offer Escrow arrangements through Spire Escrow. Customers can benefit from the reliability and expertise of Spire Escrow in protecting software and data