New York, NY – August 27, 2009 – RightsFlow, a company that manages licensing and payments for record labels, musicians, and online music services has raised $1.5 million in a first round of funding.

New York City-based RightsFlow says its technology helps companies and artists manage the complex issues around copyright and licensing. Launched in 2007, the company says it has more than 1,500 clients, including Muzak, the company whose name has become synonymous with elevator music, as well as the music start-up Imeem.

In addition to improving existing services, RightsFlow says it will use the money to build a site where individual artists can license their songs to consumers and other musicians. If you want to record a cover version of a song, the company says, you could just visit the site, search for the song, and then pay the licensing fee.

The round comes from Originate Ventures. Competitors include RoyaltyShare, which is backed by Hollywood talent agency William Morris.