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Software Maintenance



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Source Code



Source Code (Licns'ee)



Source Code (Licns'or)



Source Code Purch Agr



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Source Code

Source Code is typically a core asset of the technology enterprise and considered trade secret. Because the code can be used to easily decipher methodologies and techniques, as well as data, content and software design, most technology organizations will refrain from releasing the code in the ordinary course of business. There are, however, a few circumstances where release of source code can further the business interests of the technology vendor. Where the user demands escrow of the code as a condition precedent to a commercial transaction, the vendor may choose to enter a contingent sublicensing arrangement with an escrow agent. Vendors may choose to license the source code directly to the end user for a premium price. Vendors deciding to abandon the asset as a business initiative may choose to sell the source code to a buyer interested in the technology.

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What's in the Source Code Sub-Library

The Source Code Agreement favoring the licensee provides a framework for granting the licensee broad rights to use the source code.

Source Code licensing arrangements favoring the licensor impose very restrictive terms on the use of source code under the arrangement.

The Software Purchase Agreement structures a transaction under which seller conveys to purchaser all intellectual property ownership rights to a certain software in exchange for payment and certain sublicensing rights.


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  SOURCE CODE LICENSING



Scott Draughon illustrates why specialized agreements for the licensing of source code is so important.

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