Escrow agreements can be useful in securing the owner of the creditor to the intellectual property of a debtor or assignor, in the event of breach or default.

What is an escrow agreement and how is it used in licensing technology?

The purpose of an escrow agreement is to protect the user of the particular licensed technology in the event the owner ceases to do business or otherwise defaults in its obligations under the license arrangement. If a breach of the underlying license agreement occurs, an escrow agent is authorized to release the tangible manifestations of the technology (typically, copyrighted source code) to the user, provided certain conditions are met. Owners and licensees of technology must carefully consider the "trigger" provisions of an escrow agreement and IPH2 can assist in choosing appropriate conditions to satisfy the escrow's release. Email us at info@iph2.com.