RightsFlow, a startup that manages music licensing and payment services, has raised $1.5 million in Series A funding from Originate Ventures. Launched in 2007, RightsFlow helps online music services, record companies, distributors and artists license music and lyrics while also managing payments for the rights-holders.
RightsFlow says that the funding will be used to develop new products and services, one of which will be launched this fall. Currently named “Clearance Form” (I’m told this name is temporary), the product will be a consumer-facing site that will help coordinate payments between the licensee and licensor. So if a cover band or artist wanted to obtain the licensing rights to a particular song, they could go to the site to find and pay for the proper license.
RightsFlow’s co-founder Patrick Sullivan told me that the site will be “cost-friendly” and meant for the masses but didn’t shed any light on the pricing model. Music licensing has been a controversial topic recently, with the National Music Publishers Association filing copyright infringement lawsuits against two companies, LiveUniverse and Motive Force, for operating Web sites and applications that offer users free lyrics.
Sullivan says that RightsFlow aims to mitigate this problem by providing any artist or band with a cost-effective way to license songs. And RightsFlow will handle payments within the site, acting like an Amazon for music rights. Competitors to RightsFlow include Royalty Share and Music Reports