Through subsidiary Software Escrow (NZ) Ltd, NZCS offers a full and secure Software Escrow service, protecting both parties to software agreements.

Often when a company provides software to another company they maintain ownership of the source code and provide any updates or changes necessary for the life of the product.

But what happens if the vendor goes out of business or is unable to provide support for the software at some point in the future?

Software Escrow protects the client by securely maintaining a copy of the source code for the product. In very limited circumstances, and when there is no objection from the vendor, the source code is released so the product can continue to be maintained.

The process is relatively simple:

• The owner (supplier) of the software deposits with Software Escrow (NZ) Ltd the escrow material (source code with all libraries and documentation required to generate the system)
• SENZ stores the material in the Central Vault in Wellington
• In the event that EITHER the owner goes into receivership; OR the licensee claims that the owner can no longer support the software and the owner does not challenge the claim, SENZ will release the escrow material to the licensee(s).
• The licensee receiving material under this agreement may use the material for the purposes of maintaining the software which it is licensed to use; in no way do the intellectual property rights transfer to the licensee; the licensee may not sell or distribute the software to any other party.

The cost model for Software Escrow is simple. In most circumstances Software Escrow costs the following:

• One-off Setup Fee: $195 + GST
• (Updated 21/6/2010)
  Annual Escrow Fee: $1800 + GST p.a. ($1200 first year - see below)

First Year Special

Until the end of September we're offering a $600+GST discount on the first year's Escrow Fees. This covers new agreements only, executed before 30 September 2010. Other conditions apply.

Other Costs

The following additional fees may be payable:

• Modifications to standard Escrow Agreement - from $195+GST
• Release fee $250 + GST per licensee
• Additional licensees after the first for any deposit* $100 + GST p.a.
• Cost per update to material after the first four in any calendar year $75 + GST
• Contested Release: recovery of any legal costs

* There are standard agreements to cover both the situation where there is a single licensee and the situation where there are multiple licensees for the same deposit. Where there are multiple licensees the deposit must be such that in the event of the software being released each licensee will get an exact copy of the deposit.

For more information, please email info@escrow.co.nz or call 0800 694 235.