TECHNOLOGY ESCROW

Technology escrow is a tool designed to facilitate business transactions that require a neutral, third party to take custody of and potentially release certain technology, intellectual property or other proprietary information according to pre-negotiated technology escrow terms. Virtually any critical technology, formula, process or other intellectual property can be protected through a well-structured agreement via technology escrow. The technology escrow agreement is inclusive of all the terms and conditions required for Escrow Associates, LLC to take custody of, administer and potentially release intellectual property according to pre-negotiated terms.

The developer or owner of the technology is protected by placing their technology or other intellectual property into a technology escrow with Escrow Associates, LLC as opposed to providing this proprietary information directly to the requesting party. The end-user or beneficiary is protected since they can receive the protected technology should certain, pre-negotiated release events occur under the technology escrow.

Technology escrow services are utilized to support a wide range of business transactions that may involve technology or other proprietary information. Some examples of transactions that can benefit from a technology escrow:

• Manufacturing agreements
• Capital equipment purchases/ leases
• ASP licenses/ service agreements
• Intellectual property sale agreements
• Outsourcing agreements
• Fulfillment services agreements
• Partnership/ joint venture agreements
• Joint product development agreements
• Reseller agreements
• Merger & acquisition agreements
• Technology warranty agreements

Technology Vendors may rely on a technology escrow to protect their intellectual property while meeting the requirements of their agreement with the beneficiary.

Technology Beneficiaries or End-users use technology escrow services to alleviate risks associated with large purchases or business relationships that rely on specific technology that cannot be easily replaced.

Attorneys recommend the use of technology escrow services to mitigate risks associated with relying upon technology or intellectual property from an outside source.

Without a technology escrow agreement, critical technology investments or business practices may be left unprotected. Please visit our sample technology escrow agreements page to view and download our contract templates.

To reach one of our specialists on software escrow about the appropriate escrow service for your needs, please complete our information request form
or call 1-800-813-3523.