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A guide to Source Code Escrow ... BSI. (IT News).


The events of 11 September 2001 have reiterated the need for business continuity planning Business Continuity Planning (BCP) is an interdisciplinary peer mentoring methodology used to create and validate a practiced logistical plan for how an organization will recover and restore partially or completely interrupted critical function(s) within a predetermined  for many organizations. The disaster highlighted the interdependency of businesses on each other and never is this more prevalent in the relationship between businesses and their suppliers of proprietary software. Unless an organization uses open source software, it is wholly dependent on the suppliers for upgrades and maintenance such as bug fixes. If the supplier withdraws support, goes bust - or worse, then for the user organization, source code escrow (software) source code escrow - An arrangement where some source code is held in escrow by a third party as long as it is supported by the vendors, but should they cease to support it, it becomes the property of the purchasers so that they can arrange for its continued maintenance.  may be the only disaster recovery or assurance. The disaster the software user is planning against is not his own but that of his supplier. The supplier's disaster may well turn out to be the user's disaster as well if he has not made any provision.

What is Source Code Escrow?

Escrow is an ancient legal term referring to a deed which only becomes effective when a future event happens. This term has been applied to the deposit of source code by the software owner with an independent third party, known as the `escrow agent'. The escrow agent escrow agent n. a person or entity holding documents and funds in a transfer of real property, acting for both parties pursuant to instructions. Typically the agent is a person (commonly an attorney), escrow company or title company, depending on local practice. (See: escrow)  holds the source code according to the terms and conditions set out in a tripartite, escrow agreement Escrow Agreement

A certificate provided by an approved bank that guarantees the indicated securities are deposited at that particular bank.

Notes:
For example, an investor who writes a call option and can present an escrow agreement is considered covered.
 between the agent, owner and the software user. The agreement details the circumstances in which the source code may be released to the user - often the bankruptcy or liquidation of the owner, or the owner's failure to carry out agreed maintenance procedures which could leave the user's system unsupported. A contemporary issue that may invoke escrow would be the ability of the software to deal with the introduction of European Monetary Union European Monetary Union

An agreement by participating European Union member countries that includes protocols for the pooling of currency reserves and the introduction of a common currency.
 (EMU).

Getting It Right

Source code escrow is not just a matter of lodging some tapes or discs with a third party. It's a potentially complex minefield of software licences and attributes of the third party - or escrow agent - as well as the means to rebuild the software in its usable state. Getting the process right has implications for the software users, the developers or owners of the software, the escrow agents and any assessment body which may be called to certificate the quality processes of any one of those organizations. To cut a path through this minefield to reduce the risk of unusable software being delivered out of the process, The National Computing Centre The National Computing Centre (NCC) is a membership and research company in the UK founded on 10 June 1966 by the UK Government in order to encourage the growth of computer usage in the UK and ensure that the necessary education and training was made available.  was sponsored by the EU to develop best practice for the processes involved in source code escrow. In a truly international project, legal and escrow experts from the US and Europe contributed to a 5-part guide to source code escrow. This is published as CEN Workshop Agreement A CEN Workshop Agreement (commonly abbreviated CWA) is a reference document from the European Committee on Standardization (CEN). It is, by definition, not an official standard from the member organizations.

In the field of electronic signatures, several CWAs exist.
 CWA CWA Clean Water Act (33 USC)
CWA Communications Workers of America
CWA Concerned Women for America
CWA CEN Workshop Agreement (European pre-normative document)
CWA County Warning Area
CWA Clean Water Action
 13620: Source Code Escrow - Guidelines for Acquirers, Developers, Escrow Agents and Quality Assessors.

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COPYRIGHT 2002 A.P. Publications Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Publication:Database and Network Journal
Geographic Code:4EUUK
Date:Feb 1, 2002
Words:449
Previous Article:Using legacy resources. (IT News).
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