Source code escrow

The vendor deposits source code with a neutral third party, released to the customer if the vendor goes under or stops support.

Larger customers ask for it when a business process will depend on software from a small vendor. The agreement names the release triggers and what is deposited: code, build instructions, sometimes the infrastructure setup. A deposit that cannot be built by someone else is worth little, so some agreements include verification.

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Related terms

Source code ownership (IP assignment): Who legally owns the code you paid for. In Poland, a contractor’s code becomes yours only through a written transfer of rights.
Bus factor: How many people would have to disappear before a project stalls. A bus factor of one means one person holds the keys.
Build vs buy: The choice between paying for a ready-made product and building your own software, including what each costs over time.

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