Set Up Fees.

Some software escrow service providers levy a front end fee for "set up" or "initiation". To me, this means that you are paying to become a customer. It's like paying an admission fee to get into a store, after which you are allowed to buy something. Strangely, people seem willing to pay these fees to an escrow agent, probably because they think they have no choice.

Simply put, these front end loads are exploitive. If your escrow agent has levied them on you, demand a refund and an explanation. If they are not forthcoming, then move your escrow elsewhere. After all, by acting as he has, the escrow agent has proven that he will take advantage if he thinks he can get away with it. Knowing that, why would you leave your company's most valuable asset in his hands?

Additional Fees per Beneficiary & Product.

Another insidious pricing practice is the extra fee levied for each additional beneficiary named under an escrow and also for each separate software product covered. It is presented as a "no cost" item to the licensor because the escrow agent bills each customer directly. Why should a stranger, the escrow agent, be allowed to exploit your customer list?

To the escrow agent, his costs and risk as a service provider are the same whether the named beneficiaries are few or many, because they are names stored in a file. The same is true with the number of software products because the cost of storing a CD under escrow is the same whether it holds one product or many. If you or your customers are paying extra fees per beneficiary or per product then you are being abused.

Again, allow me to put the question. Is it wise to leave source code, probably your most valuable single corporate asset, in the care of someone who by his conduct has demonstrated a policy of squeezing a situation for all it is worth, rather than providing good service at a fair price?