ABSTRACT
Every source code escrow agreement includes a list of release conditions. On the occurrence of any of those conditions, unless the vendor is disputing the occurrence, the escrow agent is contractually bound to furnish a copy of the source code to the customer. The advantage of a self-escrow is that the customer has immediate access to the source code if a release condition occurs. In the event the vendor ceases to do business, files bankruptcy, etc., the customer can obtain instant access to the version already being hosted by the escrow company. It is only available in limited instances, and the customer must accept very limited contractual protections from the escrow company. There are basically two types of escrow agreements: two-party and three-party. In a two-party engagement, the vendor and escrow agent sign the escrow agreement. In three-party escrow arrangements, the customer, vendor, and escrow agent are all direct parties to the contract.
