August 26, 2009

By By Ed Christman, N.Y.

RightsFlow, a provider of mechanical licensing, accounting and royalty payment services for companies that sell or distribute music worldwide, has completed a $1.5 million Series A financing round with Originate Ventures of Bethlehem, Pennsylvania. The new funding will allow RightsFlow to more rapidly expand its worldwide data and licensing network as well as develop additional products and services.

"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,? said Originate Ventures partner Eric Arnson. "We see this as a real growth opportunity for RightsFlow. 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, based in New York, provides services 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, Liberation, Disc Makers, Deezer, Cooking Vinyl/Rocket Science, IRIS, Liberation and Artspages.

The company was founded in October 2007 by Patrick Sullivan, who previously was VP of licensing and music services for both the Orchard and its sister company eMusic; and Benjamin Cockerham; who was director of global operations for the music services division of the Orchard.

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