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Reselling Software? How Do You Protect Yourself & Your Clients?

Published on 28/01/2019

We are seeing an increase in the number of clients reselling or white labelling software applications as a way of expanding their service offering, to meet increasing customer demands or generate additional revenue to grow their businesses.

However, many of these clients have concerns about how they protect themselves and their customers should the IP (Intellectual Property) owner be unable to continue supporting their application.

With this type of business model, the whole thing is built like a house of cards and if the IP Owner is unable to continue supporting their application, the whole thing falls down. Leaving you and your customers in the lurch. This can then lead to significant revenue loss and reputation damage for you.

To protect against this, SES has developed our Distributor Escrow Agreement. Unlike traditional Escrow agreements which are specific to a single organisation/Escrow beneficiary, this agreement covers not only the reseller but all clients currently using the application. Protecting revenue and reputations as well as ensuring you and your clients are not left high and dry should your supplier no longer be able to continue supporting their application.

As a reseller/ distributor of this software, setting up an Escrow agreement is the first step to ensuring you are protected against forces outside of your control, but validation is the key to complete assurance. SES Remote Code Validation includes witnessing and documenting, in advance of any problems, the IP Owner building the source code into the working application and capturing the deployment process.

Performing Software Validation on your Escrow deposit provides an independent test that the source code and supporting material held under the Escrow is accurate and that you will have everything you need to maintain/develop the application and continue servicing your clients.

This article highlights just one of a number of specific Escrow agreements SES has created over the past decade which showcase SES’s ability to fulfil our customers’ ever-changing requirements.

Whether you have a niche Escrow requirement, or you are just looking for one of the only ISO: 27001 accredited Escrow agents in the UK, please get in touch to speak to one of our specialists. 

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