Royalty licensing, accounting, and compensation is a full-time job, one that can easily overwhelm a digital music startup.
That screams for an outsourcing solution, and a number of companies – including RoyaltyShare, Royalty Review Council, and RightsFlow – are aiming to fill the market niche.
The specialization makes sense, especially given the complex maze of music-related licenses. And a number of backend deals must be in place. On Tuesday, upstart RightsFlow finalized licensing agreements with the Harry Fox Agency, a mechanical licensing administrator.
The deal is specific to permanent, full-length downloads. According to Gary Churgin, president and chief executive of HFA, RightsFlow is being plugged into a bulk licensing program that started in 2002. The current US-based statutory mechanical rate is 9.1 cents for songs five minutes or less, and 1.75 cents per minute for songs over five minutes.
Story by news analyst Alexandra Osorio.