Kontor New Media Selects RightsFlow for Mechanical Licensing and Royalty Services

Kontor New Media Selects RightsFlow for Mechanical Licensing and Royalty Services

NEW YORK, December 17/PRNewswire/ --

Kontor New Media, a European market leader for digital distribution of independent music and movies, announced an agreement with RightsFlow to provide mechanical licensing and royalty payment services for Kontor's distributed labels. Kontor New Media's label clients will be able to use RightsFlow's proprietary licensing, accounting and royalty payment technology to help manage the complex issues of copyright compliance. By offering labels this service, Kontor New Media is providing a cost-effective solution that will help reduce liability and ensure that creators are paid.

RightsFlow is one of the leading experts in mechanical licensing, simplifying how rights holders get paid. As new methods of consuming music have emerged the company has been a pioneer in solving the complex issues of copyright compliance and royalty payment. RightsFlow's proprietary FLOW technology provides a single, cost-effective channel that connects rights-holders and companies that sell or distribute music. This innovative solution ensures proper licensing, accurate accounting and timely payment of royalties, and has been widely adopted by labels, artists and global businesses.

"RightsFlow's technology and service solution helps extend Kontor New Media's effort to automate the mechanical administration process for all of our clients," said Michael Pohl, Managing Director of Kontor New Media. "We are excited about the partnership and look forward to providing our labels with these cost-effective tools to manage their royalty payments and clearances."

"We are delighted to partner with a European distribution and marketing leader like Kontor," said Patrick Sullivan, CEO, RightsFlow. "We look forward to demonstrating how RightsFlow's proven, simple service can provide a cost-effective solution for mechanical licensing compliance for Kontor New Media and its distributed labels. By utilizing our streamlined licensing and payment service, participating labels will be able to better focus on their core business of releasing great music."

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 cents for songs five minutes or less and 1.75 cents 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.

For more information visit www.rightsflow.com or www.kontornewmedia.com.

Source: RightsFlow

For RightsFlow: Alex Holz, Director of Client Relations, +1-212-937-6955 x302, alex.holz@rightsflow.com; For Kontor New Media: press(at)kontornewmedia.com

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Profile: International Entertainment