by Erwan COATNOAN DE KERDU

Intangible Capital Value

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Escrow agreement: protect yourself against supplier default

Published on: 12/21/2022
By: Erwan Coatnan de Kerdu

Have you ever heard of the escrow agreement? Whether you are a supplier or a company director, this system offers many guarantees.
What is it about? Why use it and how? What elements can be deposited? We answer all these questions in this article.

A few words on the escrow agreement

Escrow agreement means an escrow agreement. It is a device that allows providers to guarantee access to computer data under any circumstances. This way, the applications and software used, as well as all data, are accessible to the company no matter what happens (even if the supplier goes bankrupt).

Why use escrow?

Today, it is becoming difficult, if not impossible, for companies not to be confronted with IT, as certain applications and software are essential to their proper functioning. As a result, they have to use suppliers to manage all their IT data, which creates a strong dependency. Indeed, if the supplier were to fail, the data would then be inaccessible to the companies, leaving them in a very problematic situation.

The use of an escrow agreement can remedy this problem, which is why it is so important, by guaranteeing access to the various elements deposited under any circumstances: bankruptcy, failure to meet deadlines, etc. But let’s take a closer look at the advantages of an escrow agreement:

  • The company manager continues to have access to the data in the event of supplier failure and is therefore much more reassured about his investments.
  • The supplier offers valuable guarantees to its customers, who are then much more inclined to turn to it.

How to set up the escrow agreement?

The first thing to do is to turn to a trustworthy device. We recommend that you opt for ICV app and its partner, an institution whose mission is to protect digital data.

Then, if you are the provider, you will have to adhere to the chosen scheme.

Finally, you will have to conclude the escrow agreement by a signature between the device (APP association…), the provider and the beneficiary.

In all cases, you will be accompanied until the end of the contract.

Escrow agreement: which elements to file?

The escrow agreement takes into account many IT elements:

Applications

It is in the interest of companies to keep up with the times, as the use of mobile applications offers new opportunities.

To ensure access to your application data, even in the event of vendor failure, place it under the protection of the escrow agreement.

Software

The escrow agreement applies to all software that enables the proper management of a company.

Databases and source codes

Access your stored computer data and source codes in all circumstances by choosing escrow.

The implementation of the escrow agreement: an advantage for all

As we have seen in this article, the escrow agreement is a device that has advantages for everyone, i.e. for both suppliers and beneficiaries. Therefore, it would be a pity to deprive yourself of it!

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