Thank you Charles, this is very useful information. We discussed a couple of 
the scenarios you describe, opting not to bother with this.

Dean

Sent from my iPhone

> On May 8, 2014, at 6:31 PM, Charles Mills <charl...@mcn.org> wrote:
> 
> The usual term for this is "source code escrow." A third party holds the
> code with a contract that says that if the vendor goes out of business or
> fails in some way then you get the source code. The third party charges, and
> so the vendor may charge you.
> 
> There are two or three HUGE problems with source code escrow:
> 
> 1. Thing about your own programs. You hire a guy or gal. You sit him or her
> down with all of the documentation and relevant tools and help from your
> experienced people. How long before he or she is productive? Three months?
> Now, suppose this vendor product blows up and it turns out the vendor is out
> of business. You are going to go to court, get the software from the escrow
> agent, get the necessary platforms and tools -- and fix the bug, all quickly
> enough to make a difference to your business?
> 
> 2. Unless you have an elaborate verification process, what if you get the
> source code and discover that through malice or oversight, the source code
> is five versions back out of date and missing three critical include files?
> 
> 3. A contract that says "we will do X in the future" -- in this case, give
> you access to our source code -- is what is called an "executory contract."
> Bankruptcy courts are very reluctant to enforce executory contracts because
> the whole point of bankruptcy is tear up whatever came before and give the
> debtor a fresh start.
> 
> Charles
> -----Original Message-----
> From: IBM Mainframe Discussion List [mailto:IBM-MAIN@LISTSERV.UA.EDU] On
> Behalf Of Dno
> Sent: Thursday, May 08, 2014 1:18 PM
> To: IBM-MAIN@LISTSERV.UA.EDU
> Subject: Vendor Source Code
> 
> Hi,
> 
>> We're looking to purchase a sw product and our lawyers are looking at the
> t's and c's to see if we can have the right to their source code. At my
> previous job we did this for BMC, we kept it at IMAR. I guess I never
> understand why, so I'm asking if anyone our there does this and for what
> reason. If the company went out of business what would the source code do
> for us? Would we give it to another third party to maintain for us? I
> appreciate the feedback.
> 
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