Music-rights company Broadcast Music Inc. said it has acquired music-recognition technology from U.K. software developer Shazam Entertainment Ltd.
Financial terms of the deal were not disclosed.
BMI, which collects royalties for musicians and publishers, formed Landmark Digital Services, a subsidiary that will market song-identification services under the brand BlueArrow. The agreement transfers worldwide rights of the technology, which allows wireless users to access information about songs played into their handsets.
Shazam teamed with AT&T Wireless Services Inc., now Cingular Wireless L.L.C., to launch North America’s first wireless music-identification service last year and had gained substantial traction in its home market. BMI said it will use Shazam’s wares to track music royalty payments.
“Pattern-recognition technology is the single most promising way to identify music performed on today’s media and further into the digital future,” said Del Bryant, BMI’s president and chief executive officer. “BlueArrow technology will give us a powerful new tool for the identification of music played on radio, television and in digital media.”
The agreement grants Shazam an exclusive license to market the technology for wireless consumers worldwide.
Meanwhile, Internet music database operator Gracenote Inc. made its own play in the music-ID space, acquiring audio fingerprinting technology from Royal Philips Electronics N.V. Gracenote, which had previously licensed the technology, said it plans to use the software to expand its offerings to chip-based recognition applications for mobile users and embedded offerings for car stereos.
The companies declined to disclose financial terms of the acquisition, although Philips gained an undefined equity position in Gracenote. The two companies also struck a pact to work together to develop new technologies and applications. “As we continue to grow our business in new and exciting directions, it is important to have best-of-breed partners who can bring technology, experience and consumer insight to the table,” said Craig Palmer, Gracenote’s CEO. Gracenote recently snared $11 million in funding from existing and new investors, and plans to use the capital to fund more technology acquisitions.
