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What is Source Code Escrow?

Source code escrow is a way to protect both the software companies intellectual property and a customers investment in the software. Source code escrow essentially means that the source code of the software is placed into a third party account managed by an escrow agent. The escrow account has certain conditions attached to it, if certain conditions are met  the source code is released to the customer. For example a condition might be that if the developer files bankruptcy the actual source code will be released to the customer.

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