Technology Escrow
in partnership with
NCC Group
Technology Escrow
in partnership with
NCC Group
In today’s increasingly tech-driven world, businesses across the spectrum are dependent on providers of technological solutions to run aspects of their operations. If a company providing these solutions doesn’t support its services and products as promised, or if it goes out of business altogether, its customers can find themselves in a severe bind, with no support available for a business-critical tool. To prevent this, a customer interested in a product license might request access to the underlying code and source documents. That way, if the provider can no longer provide support, the customer can still support the product on its own. From the point of view of a supplier, however, providing such access exposes them to the risk that their valuable IP may be improperly accessed, modified, copied or shared.
A technology escrow arrangement bridges this gap by recognizing the needs and mitigating the risks of both parties.
In a technology escrow agreement, software source code and other intellectual property (e.g. algorithms, formulas or processes) encompassing the technology in question is deposited into an escrow account held by a neutral and trusted third party, with release of the technology to the beneficiary only under certain, mutually agreed-upon conditions. The arrangement provides beneficiaries of technology with a measure of security that they will be able to continue to utilize the technology even in the event of a supplier failure, while meeting the supplier’s need for confidentiality.
Companies which have received funding from the Israeli Innovation Authority are subject to certain limitations in entering into technology escrow agreements. Companies wishing to enter into an escrow agreement must receive authorization Israeli Innovation Authority in advance.
Please contact Phoenix ESOP for additional information.
Our service suite includes software escrow and escrow verification through NCC Group, the world’s leading escrow services provider.
Software code is secured in NCC Group’s vaults which are secure physical facilities that employ rigorous standards to keep data safe and secure (e.g. offsite facilities powered with uninterruptible power supplies, non-combustible construction, gaseous fire suppression systems, and sophisticated access control security systems). NCC Group also employs best practices to track chain-of-custody, including strict procedures addressing storage, facility, and deposit retrieval security. Technology deposits are released only upon careful evaluation of the agreement terms and in compliance with the agreed-upon process.
Although putting software in an escrow account ensures that code will be released if and when a release condition occurs, that doesn’t necessarily mean that the software released will be complete, usable, or even readable. Verification services provide validation that the code included in an escrow deposit is complete, and that each deposit contains all the components needed to read, recreate, and maintain the software or technology in-house. There are different levels of verifications available to address the various requirements.
For over 40 years, NCC Group has been delivering software continuity assurance through the provision of market-leading escrow solutions. Its agile and robust Software Resilience services protect c.50,000 contract parties in 135 countries throughout the development, supply and use of business-critical applications.
NCC Group’s Software Escrow solutions for on-premise, SaaS and hybrid environments, include legal agreements and source code validation services – all delivered to accommodate a range of international laws, and bolstered by our global network of secure physical and virtual vaults.
Tel: +972-3-5757088
Fax: 972-3-7602636
Email:
Esop-Helpdesk@esop.co.il
SERVICE CENTER (trading days only), Israel Time:
Sun. : 09:00 - 16:00
Mon. – Thu. : 09:00 - 17:30,
Support for trade abroad 16:30 - 23:00
Fri. : Support for trade abroad 12:00 - 23:00
Customer service:
1-700-70-3767
+972-3-7536823 (Dial in from abroad)