IACCM Contract Management Forum

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Rogers Communications
2018-12-06 17:48:18

Source Code Escrow Type Protection for non-software

I am brainstorming ideas for a supplier contract where I want to ensure the technology and services to be provided by the supplier for resale to our end-customer over a long term contract do not disappear, either through supplier insolvency or acquisition. If this were a software deal, I'd ask for source code escrow from the supplier. What would an equivalent level of protection be for a hardware/services solution?
 •  IACCM  •   2018-12-07 15:30:57
Interesting point, Michelle.

I´d strongly encourage you to raise this question also within the IACCM technology network, which is a micro-community, where you will be able to get insights to new trends in this specific field and where I am sure you´ll have the opportunity to share ideas regarding the topic you have brought:


Also, please check our library: www.iaccm.com/resources/
where, you will find some articles about 'escrow agreements' for the software arena and other topics associated with risk management in the hardware world as well. By analogy you will explore ideas regarding hardware coming from best practices and escrow programs with the goal of risk mitigation


Best regards
 •   2018-12-29 21:07:59
Hi Michelle - saw your post. For hardware: having a refresh plan with your supplier following a bit of a mutual benchmark, to see how best to provision for your upcoming capacity needs, might give some assurance. For services or subscriptions-based tech: having a documented 'cookbook' of key players and tech needed to recreate the service, including a list of any solutions 'not commercially available' or not easily re-purchased in Canada updated, might also be helpful to gage the difficulty of transitioning off your current tech,if needs be.

Those two governance-type processes, along with the typical supplier obligation to reasonably cooperate with any successor and to provide some mutually-agreed orderly termination assistance, might serve you well (outside escrow for software). Hope that offers some ideas...good luck. Cheers, Robin
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