I would really like to see some comparative effectiveness research and/or robust studies that support this “conviction”, and that refute a growing body of literature that provide contrary evidence.

When a software company goes belly-up the only real asset they have is the software and the client base. Meanwhile, bankruptcy judges sit at the right hand of GOD. In one quick motion they can cancel ALL existing contracts or freeze them. Their main focus is to preserve all assets for possible satisfaction of creditors, and you bet the creditors will ask that the software be held back from any distribution. That means good-bye base contract and its escrow clause. Look at what the bankruptcy court has done for airlines – bye-bye labor contracts etc. (they could do the same for GM & Chrysler…but that’s for another blog).

And by the way, even if you make sure the code is off site in the hands of an independent third party (escrow agent) the judge still can freeze it. Maybe if you ‘get wind’ the bankruptcy is coming you could try to get the code from the third party early…but the judge will make you give it back. Just like anyone that is paid by the company within the last 90 days of bankruptcy filing can be told to give the money back to the debtor. Having been both a vendor, and a buyer I’ve seen it happen.

Click On The Street A Show of Legs in Paris for some narrated inspiration on what would surely charm everyone you meet in Chicago or anywhere else for that matter.