When are escrow services needed?
Source code is essential for developing and using applications, in addition to its use within IT systems. This code is usually stored with an IT supplier, and while this is generally secure, problems can arise if a supplier goes out of business for instance. In a case such as this, valuable source code can suddenly become inaccessible.
Therefore, the Stockholm Chamber of Commerce offers escrow services, both physical and digital storage, to securely store company source code and other trade secrets as an independent third party. These services are available whether you are a buyer or a supplier and can include other to store other types of documents to be placed in escrow, for example contracts, tender lists, or paintings.
Frequently asked questions about the escrow services provided
Are the escrow services offered only available for software?
No, anything except cash can be deposited in escrow. Product formulas, stock options, drawings, contracts, and other valuable documents are accepted under the SCC’s coverage. If you have questions regarding this, please contact us before drafting an escrow agreement.
What is the procedure for placing source code in escrow?
Click on the link below for step-by-step instructions on the process and agreements needed to make an escrow deposit.
How long does the escrow process take?
Processing is normally quick and takes no more than five to ten days upon receipt of a draft agreement. This can depend on the extent of the changes made to the Model Agreement and the postal service.
Can the Stockholm Chamber of Commerce verify the source code?
The SCC does not carry out verification. This way we ensure the licensor’s interests are protected, by not accessing the code itself. The SCC recommends that source code verification take place before the deposit is submitted.
What happens in the event of bankruptcy?
If bankruptcy is included as grounds for release, there is a risk that the insolvency administrator will object to the release of a deposit if the regulated right-of-use is extensive (e.g., exclusive). Due to legal uncertainty regarding the conflict between the right in rem (the deposited copy) and the licensee’s right of use to the copyright, the SCC cannot provide a legal guarantee that release can take place in the event of bankruptcy.
Price list for escrow services.
What is SCC e-Deposit – digital deposit and storage?
About SCC e-Deposit
We are now offering digital deposit and storage of source codes through our platform SCC e-Deposit.
The platform provides the parties a secure and efficient tool to communicate, deposit and store the deposited material. The platform will also be the SCC’s main channel for communication with the parties. Each escrow agreement will be allocated its own individual site on the platform to which the parties to the agreement will be invited. Only the contact persons specified in the agreement will be provided access to the site.
By assigning the parties different authorizations on the platform, it is ensured that the licensor has the ability to deposit the material but subsequently cannot change or delete what has been uploaded. In the same way the licensee will, just as before, be notified as soon as a new deposit has been uploaded but will not be able to access or view the material.
Benefits of SCC e-Deposit:
- No need to send sensitive material by post or email.
- Secure cloud-based storage within the EU.
- All deposits in one place, organised and searchable.
- Deposited material cannot be removed or amended once submitted.
- Full transparency regarding who has access to the site.
Do you have any questions regarding our escrow services?
You are welcome to contact us at: firstname.lastname@example.org