Schwartz will be responsible for leading the company in its growth efforts, developing a balanced business plan, and improving Reciprocal's professional services capabilities, the company said in a statement.
"Reciprocal's objective is to move from an entrepreneurial development start-up to a high-volume and quality service company," Paul Bandrowski, co-founder and previous CEO, said in the statement. "I look forward to supporting John in taking Reciprocal into the new millennium as it achieves operational excellence."
Bandrowski will assume the post of vice chairman and will continue his efforts as company spokesman and deal-broker, Reciprocal said.
This is not the first time Reciprocal has attracted a high-level executive from an established technology company. More than half of AT&T Labs' a2b Music executives, including the division's co-founders and 12 other senior executives, left last year to lead Reciprocal's music division.
Reciprocal gives content providers in the music, film, publishing, entertainment and other content-specific industries a way to block illegal copying. In addition, it allows them to track customers and manage back-office operations by administering royalty payments, for example.
The company has partnerships with Microsoft, First Data, Softbank, Xerox, Reuters, Bertelsmann, Adobe Systems, Sony and several others.
Other companies in the digital rights management market include InterTrust, which also has a partnership with Reciprocal, and RightsMarket.com, a publicly traded company based in Alberta, Canada.