[This post was authored by FMC intern Danny Weiss]

In a December 9 blog post, YouTube Product Manager David King announced Google’s acquisition of licensing and royalty service provider, RightsFlow. YouTube, a subsidiary of Google, will combine “RightsFlow’s expertise and technology with YouTube’s platform (and) hope to more rapidly license music on YouTube…”

The acquisition of RightsFlow falls in line with YouTube’s effort to create a more streamlined process of licensing and royalty distribution for copyright holders on the platform. Along with the introduction of the automated Content ID System and their Partner Program, the RightsFlow acquisition is the company’s latest effort to efficiently license music on the site. King explains, “RightsFlow has been at the forefront of solving the complex issues of licensing and royalty payment management. We couldn’t think of a better team to bring on board to further YouTube’s support of the creative community.”

RightsFlow CEO Patrick Sullivan sees the acquisition as a tremendous opportunity for both parties. In a statement on the RightsFlow homepage, Sullivan explains, “We’re pleased to now be taking a momentous step with the team at YouTube, that shares in our vision of solving the really challenging problem of copyright management. Combined with the worldwide platform and reach of YouTube, we’ll now be able to drive awareness, adoption, and licensing success to a much larger audience — ultimately benefiting users, artists, labels, songwriters, publishers, and the entire global music ecosystem.”

Google’s acquisition of RightsFlow represents an intriguing collaboration between major players in the content distribution and content licensing industries. We at FMC will keep a close eye to how this implementation affects YouTube and RightsFlow and the way artists are compensated on what has become one of the biggest platforms for music discovery in the online space.