Technology Company Counselor - Source Code Escrow When Entering into a Software License Agreement--Is it Necessary? - Comments http://www.techcompanycounselor.com/ Business Litigation, IP & Employment Law: Epstein Becker & Green Law Firm en Copyright 2012 Mon, 14 May 2012 11:04:53 -0500 Mon, 14 May 2012 11:04:53 -0500 http://www.sixapart.com/movabletype/?v=4.32-en http://blogs.law.harvard.edu/tech/rss Hlias I could not refrain from commenting. Well written!

]]> http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176711 http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176711 Transactions Tue, 01 May 2012 14:19:08 -0500 Michelle Capezza Neil Gladden Hi Hylan, In the article you made reference to changing bankruptcy laws and their potential impact on software escrow release clauses. In the Software Escrow Guardians agreements we counsel against bankruptcy and emphasize release for breach of support. This covers a wider range of potential release events and offers the licensee a greater level of protection. For example. a competing software house taking over another software house, with the software house doing the takeover, shutting down support for the "old" application in favor of their application. In this case there is no bankruptcy, however, there is termination of support. Regards Neil

]]> http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176714 http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176714 Transactions Tue, 01 May 2012 14:19:08 -0500 Michelle Capezza Legal Document Glad you posted this article. One thing I've found interesting over the years is that most of my clients never exercised their rights under the source code escrow clause, even for mission critical applications. Usually, the software ages so rapidly that if a release condition occurs, they simply buy new software and migrate over their data. Have you found this to be the case with your clients?

]]> http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176833 http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176833 Transactions Tue, 01 May 2012 14:19:08 -0500 Michelle Capezza Hylan Fenster Hi Neil,

Thanks for the comment. Your suggestion is a good one and release for lack of support should provided for in the agreement. In my post, I was simply suggesting that bankruptcy laws be reviewed since they may disallow release of the source code to the licensee (and in case lack of support cannot be argued or claimed).

Regards,

Hylan

]]> http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176836 http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176836 Transactions Tue, 01 May 2012 14:19:08 -0500 Michelle Capezza Hylan Fenster Legal Document--

Thanks for your comment. I prefer to negotiate that updates or future releases be regularly and promptly provided to the escrow agent. While not always the case, this should lessen the risk that the client would have to buy new software if a release event occurs.

Thanks,

Hylan

]]> http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176838 http://www.techcompanycounselor.com/transactions/source-code-escrow-when-entering-into-a-software-license-agreement--is-it-necessary/#176838 Transactions Tue, 01 May 2012 14:19:08 -0500 Michelle Capezza