Product Escrow Agreement
Product Escrow Agreement for a multinational electronics and electrical equipment manufacturer
This multinational client is a commercial manufacturer of electronics and electrical equipment across the globe.
SES was approached by a multinational electronics and electrical equipment manufacturer to secure their access to bespoke products developed with a third party supplier. Whilst there was a long-standing relationship in place, the supplier had recently been acquired by another organisation. There was a concern that this could affect the working relationship, potentially impact on the continued development of the products and restrict their access to the supplier owned IP that the products depend upon.
SES implemented a Product Escrow Agreement for each product to capture all material required for the continued access to and development of the product. SES led the discussions to create bespoke contracts and provided both parties with the flexibility to make amendments and protect their interests. The material held under Escrow was bespoke to the products and included securing all manufacturing designs, product reports, source code and data. Each agreement included an On-Site Validation of each product to confirm the accuracy of the protected material and capture the knowhow required to support the products going forward.
With effective Escrow protections in place, the electronics and electrical equipment manufacturer is now secure in their relationship with the supplier and both companies plan on continuing their rewarding relationship for the foreseeable future.