Protect Your Products With A Software Escrow

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When do you need an escrow service? What can you use an escrow account for? Traditionally, escrow is an arrangement set up between two parties where a third party holds funds or documents until the terms of the contract set up by the parties are fulfilled. If you have a software company and want to sell your product, you can set up a software escrow with an online company to protect your licenses, intellectual property, products, and software. There have been internet escrow companies around for a while now, and they can offer you services for cents on the dollar as opposed to traditional escrow services.

There are bogus escrow companies out there so it behooves the buyer to beware. Bogus internet escrow companies will closely resemble the legitimate ones. If you send your money to these fake companies, you will receive nothing in return. The same thing happens if you send them your merchandise or product. A legitimate software escrow company, or traditional escrow company will be listed in a government registry, so never use a company that you do not find there first.

There are several types of escrow agreements available. There is the single beneficiary escrow which is a third party agreement between an owner, or licensor, and beneficiary, or licensee. Use this type when there is exactly one owner and one beneficiary. A multiple beneficiary escrow is a two party agreement between the escrow company and the owner and any number of beneficiaries can be added. You can also have a multiple beneficiary escrow where each beneficiary is considered a separate escrow and deposits are made to each. Further, you can specify the product to which each of the multiple beneficiaries is to receive a deposit on. Depending on the company you choose, there may be more escrow options available.

Another example where an escrow service is used is in banking. An automated teller machine acts as an escrow by holding the money deposited in it. A vending machine acts as an escrow by holding your money until a successful transaction is completed. Your mortgage company may not trust you to make your tax payments and so will require you to have a tax escrow account set up to pay property taxes and hazard insurance. This could include fire, flood, or disaster insurance. These types of escrows are required by law to be analyzed and adjusted for cost increases or decreases every twelve months so that there is no escrow shortage. To avoid fraud, use a licensed escrow company.

About the Author:
EscrowTech is the leading provider of software escrow and technology escrows, IP audit trails, independent testing and verification services, and IP due diligence services. (https://www.escrowtech.com/)



Article Originally Published On: http://www.articlesnatch.com


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