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by richardwhiuk 3978 days ago
Could be part of an escrow contract - e.g. if the company goes out of business, after x years, the escrow agent will release the code into the public domain.
2 comments

I've been through this a few times as both the vendor and the client. There are normally a bunch of conditions that can trigger a release of the the source code to the client. These _could_ include business failure but also non-performance or acquisition.

I've never come across one where escrow agent will release source to the Public Domain but I guess it could happen.

Companies like Iron Mountain have escrow services for clients of SaaS providers. I think in these cases data escrow is significantly more important than source code escrow.

I was thinking about something similar.

If a failed startup releases their source code and another team picks it up and solves whatever problem the original team had - time, resources, bugs, etc. and is successful, then there would be some kind of kickbaack (albeit small) to the original owners or developers.

You could think of it as a code consignment shop.