RightsFlow is upgrading its "Flow" system to handle licensing, accounting and payment solutions for labels, distributors and online music services to license and pay songwriters and music publishers.

The launch of the turnkey product follows a recent announcement between the Digital Media Association (DiMA), the National Music Publishers' Association (NMPA) and the Recording Industry Association of America (RIAA), together with the Nashville Songwriters Association International (NSAI) and the Songwriters Guild of America (SGA) whereby "limited download and interactive streaming services will generally pay a mechanical royalty of 10.5% of revenue, less any amounts owed for performance royalties."

"We are very excited to be able to provide these services to our clients," RightsFlow president/CEO Patrick Sullivan said in a statement. "Through this new offering labels, distributors, and online music services alike can easily and efficiently fully outsource their publishing licensing and royalty operations for interactive streaming and conditional downloads, enabling a hassle free way to offer such content legally."

The RightFlow systems allows it to manage enormous quantities of licenses and royalties very efficiently. In addition, RightsFlow's outsourced licensing service interfaces with the bulk licensing system of The Harry Fox Agency, Inc. (HFA) to ensure publishers and songwriters are properly compensated under U.S. law.

This service competes against Woodland Hills, Calif.-based Music Reports Inc. and New York-based RoyaltyShare, which announced it could service publishers and online music services for the proposed royalty structure agreed to be DiMA, NMPA, RIAA, SGA and NSAI.

"With the new bolt-on solution, RightsFlow has once again demonstrated an ability to move quickly to changes in the market, providing scalable back office licensing solutions, IODA VP of content Erik Gilbert said in the press release on the new RightsFlow service. "They provide an invaluable service to independent labels."