I can't speak specifically to EDI software vendors although I worked for two
but it was commonly required by large companies, e.g., the Baby Bells and
the federal government.  It is especially essential when doing business with
a small software company as the likelihood of their being around in five
years is not good.  It is advantageous for a software company to provide an
option for escrowed code as they probably won't get the business otherwise.
I'm not aware of disadvantages as the events which trigger the code to be
passed to the buyer are spelled out in the sales contract and usually only
take effect upon the demise of the software company or their dropping the
product.

I vaguely recall that sometimes an additional fee was called for when
software was put in escrow but I don't require how much it was.

Jim Divoky, EC Solutions, 865-471-5529

----- Original Message -----
From: Ajay K Sanghi <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Monday, April 03, 2000 2:10 PM
Subject: escrowing source code


> Hi! Is it common for EDI software vendors to escrow and pledge their
source
> code to their EDI implementors (VARs/System Integrators) and/or End Users
> (particularly if they are big hub companies)
>
> Such a request has been made to us, which we feel is not common.
>
> I'll appreciate if the list can ellaborate on the advantages and
> disadvantages of escrowing the source, besides it being a normal practice
> with edi vendors or not.
>
> Thank you for your responses,
>
> Regards,
>
> Ajay
>
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