RightsFlow, a startup which offers licensing, accounting and royalty payment services for companies that sell or distribute music, has raised $1.5 million in funding. The Series A round comes from Originate Ventures.
The New York-based company said it deals with the issue of copyrights and royalty accounting in the music industry. It has built an online place where users can manage these complicated parts of selling, licensing and paying for digital music. RightsFlow also said it ensures artists, songwriters, and publishers are paid for the use of their music – all this through its own payment platform.
WIth this round of funding, RightsFlow plans to build consumer facing products – for example, dealing with bands wanting to cover songs, or companies looking to publish lyrics – they’ll be able to use RightsFlow to get the rights to the music, and pay for them on the site. The company also plans to expand worldwide.
Since being founded in 2007, RightsFlow said it now provides service for over 1,500 clients, including the well known, imeem, an online social music service, as well as Muzak, which offers in store music for retailers and restaurants.
Patrick Sullivan, co-founder of RightsFlow previously served as a dual Vice-President of Licensing and Music Services for TheOrchard and eMusic.
In the music and copyrighting online space, RightsFlow faces several competitors such as RoyaltyShare, which is based in San Diego, and Music Reports, which is based in Woodland Hills, Ca.
