New agreement with RightsFlow

Tuesday, 9 June 2009

APRA|AMCOS and RightsFlow enter into identification agreement to pay USA royalties to Australian songwriters and publishers

APRA|AMCOS and RightsFlow - a provider of bulk mechanical licensing and royalty services - announced today an agreement that will allow RightsFlow to identify Australian and New Zealand works based upon their clients’ master record content.  The project will ensure that digital royalties owed to Australian songwriters for transactions in the US will be accounted for and paid through to the Australasian rights holders.

The agreement grants RightsFlow access to the APRA|AMCOS database to search Australia and New Zealand works and identify specific songwriters and publishers. This will enable RightsFlow to identify the relevant US administrative body and seek licences through the Harry Fox Agency or directly with US publisher entities.

“Our members have told us that clearances for digital mechanicals in the USA can be complicated. We’ve sought to address their concerns by entering into this arrangement with RightsFlow in order to make that process easier for Australian and New Zealand composers,” said Scot Morris – APRA|AMCOS’s Director of International Relations. 

“This agreement shows that APRA|AMCOS is taking positive steps towards simplifying the process of international licensing, which will greatly improve royalty accounting and payment for Australasian songwriters. As both an international licensee and Australian songwriter, this pleases me greatly,” said Matt Irvin, Director of Licensing & Royalties at RightsFlow.

RightsFlow’s proprietary mechanical licensing ‘FLOW’ system is built to license, account, and pay publisher royalties for DPD, interactive streams and limited downloads, including subscription and ad-supported models. The inclusion of the APRA|AMCOS agreement will ensure that Australian writers can be accurately identified and accounted to through the appropriate US representative.
 
Under U.S. Copyright Law, mechanical licenses are required for music to be distributed through online music services. The current U.S. statutory mechanical rate for permanent downloads is 9.1¢ for songs five minutes or less and 1.75¢ per minute for songs over five minutes. Limited download and interactive streaming services generally pay a mechanical royalty of 10.5 percent of revenue, less amounts owed for performance royalties. To ensure publishers and songwriters are properly compensated under U.S. law, RightsFlow’s licensing service utilizes the bulk licensing system of The Harry Fox Agency, Inc. (HFA), a leading U.S. music rights licensing organization, as well as bulk licensing systems used by the thousands of publishers not represented by HFA. 

About APRA|AMCOS

APRA|AMCOS help Australian & New Zealand music consumers get access to the world’s musical repertoire, as well as ensuring that Australasian songwriters, composers and music publishers, are rewarded whenever, and wherever, their musical works are played, performed or reproduced.

APRA was established in 1926 to administer the performing and communication rights of composers, songwriters and music publishers. Today, APRA represents more than 55,000 members in Australia and New Zealand. Public performances of music include music used in pubs, clubs, fitness centres, shops, cinemas and festivals, whether performed live, on CDs or played on the radio or television. Communication of music covers music used for music on hold, music accessed over the internet or used by television or radio broadcasters.

AMCOS collects and distributes mechanical royalties for the reproduction of members’ musical works for many different purposes. These include the manufacture of CDs, music videos and DVDs, the sale of mobile phone ringtones and digital downloads, the use of production music and the making of radio and television programmes. Since 1997, APRA has managed the day-to-day operations of the AMCOS business.

About RightsFlow

RightsFlow offers Mechanical Licensing & Royalty Solutions for labels, distributors, and online music services. We specialize in obtaining bulk mechanical, DPD, and ringtone licenses including streaming, tethered, and limited downloads rights. Our proprietary "FLOW" system allows us to license, account, and pay royalties directly to the Harry Fox Agency (HFA) and the thousands of publishers not represented by HFA. Today, RightsFlow services over 1,500 labels for mechanical and DPD licensing. Some of the many clients we service include marquee companies such as imeem, E1 Entertainment, Muzak, EMI Music, Active International, CD Baby, IODA, Audible Magic, YouLicense, Constellation Wines (Blackstone), X5 Music Group, Zebralution and Disc Makers, among others. For more information on RightsFlow’s services and management team, visit www.rightsflow.com.