RE: Software escrow

One of the reasons for holding the software source code in escrow is to
protect you, the customer, if the software company goes under.  If the
software company pays the third party legal agency to hold the code, isn't
the escrow protection vulnerable if the software company is unable to pay
its bills?

-Jim

-----Original Message-----
From: Jeff Crosby [mailto:jlcrosby@dilgardfoods.com]
Sent: Sunday, July 07, 2002 8:56 AM
To: midrange-l@midrange.com
Subject: Software escrow


We are looking at new salesforce automation software for our salesreps
laptops.  I got the software license agreement paperwork and whatnot.  I
was surprised to find that if we want the source code escrowed (is that
a word?), we need to pay $900/year to this legal agency.  I pitched a
bit of a fit because this was a complete surprise.  Their response was
"Hey, it's optional so just don't do it."

One of the names in the legal firm is the same last name as one of the
principals in the software firm, so, being the cynic that I am, I just
took it as a way to get more money into the family.

My question is, is this normal to pay annually for software escrow?

Thanks.

-Jeff Crosby
Dilgard Frozen Foods, Inc.