RightsFlow Raises $1.5 Million

RightsFlow, a New York-based music-licensing and royalty payment technology platform, has raised $1.5 million in Series A funding from Originate Ventures.

RightsFlow, a leading provider of mechanical licensing, accounting and royalty payment services for companies that sell or distribute music worldwide, announced the completion of a $1.5 million Series A financing round with Originate Ventures of Bethlehem, Pennsylvania. Profitable since launching in 2007, the company helps online music services, record companies, distributors and artists properly license and remain compliant with a complex array of U.S. copyright obligations while ensuring payment for rights-holders. The completion of the Series A financing will allow RightsFlow to more rapidly expand their robust worldwide data and licensing network as well as develop additional products and services.

“As distribution methods for music have changed the legal obligations to comply with U.S. copyright laws have gotten even more complex,” said Patrick Sullivan, cofounder, President and CEO of RightsFlow. “We believe that creators should be paid for the use of their work and recognize that in a digital era many businesses are either unaware of the copyright regulations or find them to be a costly burden. The service we have pioneered creates a single, cost-effective channel through which rights-holders and companies that sell or distribute music can connect, ensuring proper licensing, accurate accounting and timely payment of royalties. ”

“It is no secret that physical sales of music continue to trend downward while the array of devices and delivery methods for digital tracks continues to grow. We see this as a real growth opportunity for RightsFlow,” said Eric Arnson of Originate Ventures. “Regardless of the distribution method, music publishing and copyrights are still an integral part of the music being used or sold. RightsFlow has built a successful business addressing the issues of copyright compliance and royalty accounting.”

RightsFlow has been at the forefront of solving the complex issues of copyright compliance and royalty payment as new methods of consuming music have emerged.

The company’s proprietary licensing, accounting and royalty payment technology is widely recognized as a cost-effective and reliable service that makes it easy for businesses selling or distributing music in a digitally enabled market to be compliant with U.S. copyright laws. RightsFlow also ensures that artists, songwriters and publishers are paid for the use of their music and provides them with an unprecedented level of data transparency. RightsFlow provides service to over 1,500 clients including such marquee companies as imeem, E1 Entertainment (US & Canada), Muzak, INgrooves, CD Baby, IODA, YouLicense, X5 Music Group, Zebralution, Disc Makers, Deezer, Cooking Vinyl/Rocket Science, IRIS, Liberation and Artspages.

Founded in October 2007 by Patrick Sullivan and Benjamin Cockerham, RightsFlow’s experienced executive management team possess a deep knowledge of the music industry and are experts in the areas of intellectual property, licensing and royalties and digital music and media strategies. Sullivan has extensive experience in intellectual property and copyright management for the music industry and most recently served as a dual Vice-President of Licensing and Music Services for both The Orchard & eMusic. Cockerham served as the Director of Global Operations for the Music Services division of The Orchard before cofounding RightsFlow with Sullivan.

About RightsFlow / www.rightsflow.com

RightsFlow is a leading provider of a music-licensing and royalty payment technology platform for online music services, record companies, distributors and artists. The company specializes in obtaining bulk mechanical, DPD, and ringtone licenses including streaming, tethered, and limited downloads rights. The proprietary “FLOW” system developed by RightsFlow allows them to license, account, and pay royalties on behalf of clients quickly and accurately while ensuring rights-holders are paid for the use of their material. RightsFlow services over 1,500 clients for mechanical, DPD and interactive streaming licensing and is headquartered in New York City.

About Originate Ventures / www.originateventures.com

Originate Ventures is a venture capital firm that targets early stage product and services companies in Pennsylvania and surrounding regions. The firm focuses on opportunities in the information technology, healthcare, consumer, Web-based and certain commercial product and distribution fields. Operating with an entrepreneurial spirit and vision, Originate’s investments range in size from $1,000,000 to $4 million.