1. What is source code?
Source codes are program instructions that are readable by humans. This is different from object code, which is the machine language a computer understands.
2. What is source code escrow?
Source code escrow is a provision sometimes found in software license agreements in which the licensor of the software agrees to deposit a copy of the source code for the software to a third party. The source code would be released by the third party to the licensee (customer) upon certain release conditions agreed in advance.
3. Why would a customer ask for this provision?
A customer may ask for a source code escrow provision in a software license agreement as a means of protecting its investment in the software. The customer may want the source code in order to maintain the software in the event the licensor goes out of business.
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