Rightscorp completes APO
October 29, 2013
By Colin Mann
Rightscorp, a company focused on the monetisation of copyrighted Intellectual Property, has completed an alternative public offering (APO) and has commenced trading on the OTCQB under the ticker ‘RIHT’.
In conjunction with the public offering, Rightscorp has completed a $2 million equity financing priced at $0.50 per common share with warrants at an exercise price of $0.75 that expire in 18 months. The funds will be used to ramp up revenue-producing operations and build out its proprietary technology portfolio, as well as for general administrative and operating expenses.
Rightscorp says is uniquely positioned in the IP asset space as a result of its focus on the monetisation of copyrights. The Company’s patent-pending digital loss prevention technology focuses on the infringement of digital content such as music, movies, software, and games and ensures that owners and creators are rightfully paid for their IP.
Rightscorp notes that according to the Recording Industry Association of America (RIAA), approximately 30 billion songs were illegally downloaded on file-sharing networks between 2004 through 2009. Rightscorp estimates that this number was well above 100 billion songs over the last 12 months. The digital theft of music, movies and copyrighted content accounts for 24 per cent of global Internet bandwidth, according to the Information Technology & Innovation Foundation.
Rightscorp says it offers an efficient solution to this problem, with its technology identifying copyright infringers, who are offered a reasonable settlement option when compared to the legal liability defined in the Digital Millennium Copyrights Act (DMCA). The company says it is pursuing an estimated $2.3 billion opportunity.
“We have reached a new threshold by completing our going public transaction and becoming a fully reporting company. We expect to expand our corporate awareness and gain greater access to growth resources,” explained Rightscorp CEO Christopher Sabec. “This could not come at a better time, as we ramp up our copyrights under contract and expand our relationships. Rightscorp is consistently delivering double-digit quarterly revenue growth, and our proven method of monetising copyrights is tapping into an enormous market opportunity.”
DigitalRights, founded in 2011 by Christopher Sabec and Robert Steele, has recently changed its name to ‘Rightscorp’, which Sabec suggested more succinctly described the Company’s mission and the value it delivers to the creative community as well as to its shareholders.