n Without Prejudice - Outsourcing software development and source code escrow agreements : contract law

Abstract

The outsourcing of software development is common place, with many businesses outsourcing all their development needs or certain mission-critical components. This very often leaves businesses in a precarious position. The software developer is not prepared to assign its copyright in the software to the business nor is it prepared to reveal the software's source code, or is only prepared to do so for a sum the business will not pay. The business (the licensee) is forced, therefore, to license the software from the developer.