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The most common event that will trigger the release of your source code is going out of business Other conditions that may be written into the escrow agreement might include the failure to maintain or update your program per the terms of your license agreement or the failure to provide timely technical support Do you need to escrow your source code This depends on the nature of your application If it will cost your customer a large amount of time and money to replace your product, incurring the costs of conversion and training to learn a replacement application, they might feel more comfortable knowing the source code for your product is in escrow.

Livingston: Do you remember the biggest debate that you got into Brady: There was always speed versus look-and-feel. In trying to grow a brand,

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look-and-feel has a lot to do with it, as does speed, so there s always that balancing act. Arguing the necessity of graphics with Filo was always a big argument. I ll never forget our 8-year debate. How to handle pornography was another one. There were just so many. There s no one that just stands out as a watershed per se. There was a lot of Internet-related legislation in the first couple of years, and Congress, in my opinion, didn t have a clear idea what was going on. They were obviously influenced by lobbyists from traditional media who had very specific agendas that weren t necessarily in the best interest of the Internet s development. Should we say anything How should we react There were certainly those. We turned our site black a couple of times the background black and the text in white in protest. I forget what the proposed legislation was.

Livingston: Was new legislation a big concern Brady: Absolutely. Just a few things here and there copyrights, digital rights written in a slightly different way and we could have a different Internet.

The more mission critical your application is to your customer, the more likely that they will want the security of knowing that they can get the source code in the event there is a problem with the program that you cannot or do not correct in a timely manner So for a relatively simple and inexpensive application that could be easily replaced, source code escrow will probably not result in any additional sales For your customers, it s simply not a consideration The need to escrow your software source code is also a function of the size and history of your company When you re just starting out and may be only a one-man shop, or have only a few people working, and very little track record, knowing that your software s source code is available might give a potential customer the additional confidence they need to buy your product..

Livingston: Do you remember any other interesting new turning points Brady: I remember one day when Rabin, the Prime Minister of Israel, got shot.

It was the first time that we put new news on the front page. For us to think of our site as a public service to some degree to find things on the web and use it to communicate news was a big deal. Rabin Assassinated was our first foray into news, and the reaction we got from everyone about using Yahoo for that purpose was overwhelmingly good.

Livingston: Any proud moments Brady: The Gates memo was a pretty cool moment scary and proud at the same time. Going public was a proud moment. Being added to the NASDAQ 100 was an even prouder moment. Livingston: Was it hard for Yahoo to turn down acquisition offers in the early

Brady: I obviously never had equal weight in that decision It was always Jerry and Dave, and I don t know the full list of suitors I know AOL was a suitor, I know the LA Times was a suitor, and I know they had gotten informal offers from Microsoft never anything concrete A lot of them were very early on, before they even took venture money For Jerry and Dave neither grew up with a lot of money to turn down a lot of money at that stage with no guarantee of the company doing anything afterwards, was, in my estimation, a big deal They had a lot of confidence in what they were doing.

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