[Code of Federal Regulations]
[Title 37, Volume 1]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 37CFR262.5]

[Page 669-670]
 
              TITLE 37--PATENTS, TRADEMARKS, AND COPYRIGHTS
 
                                CONGRESS
 
PART 262_RATES AND TERMS FOR CERTAIN ELIGIBLE NONSUBSCRIPTION TRANSMISSIONS, NEW SUBSCRIPTION SERVICES AND THE MAKING OF EPHEMERAL REPRODUCTIONS--Table of Contents
 
Sec. 262.5  Confidential information.

    (a) Definition. For purposes of this part, ``Confidential 
Information'' shall include the statements of account, any information 
contained therein, including the amount of royalty payments, and any 
information pertaining to the statements of account reasonably 
designated as confidential by the Licensee submitting the statement.
    (b) Exclusion. Confidential Information shall not include documents 
or information that at the time of delivery to the Receiving Agent or a 
Designated Agent are public knowledge. The Designated Agent that claims 
the benefit of this provision shall have the burden of proving that the 
disclosed information was public knowledge.
    (c) Use of Confidential Information. In no event shall the 
Designated Agent use any Confidential Information for any purpose other 
than royalty collection and distribution and activities directly related 
thereto; Provided, however, that the Designated Agent may disclose to 
Copyright Owners and Performers Confidential Information provided on 
statements of account under this part in aggregated form, so long as 
Confidential Information pertaining to any individual Licensee cannot 
readily be identified, and the Designated Agent may disclose the 
identities of services that have obtained licenses under 17 U.S.C. 
112(e) or 114 and whether or not such services are current in their 
obligations to pay minimum fees and submit statements of account (so 
long as the Designated Agent does not disclose the amounts paid by the 
Licensee).
    (d) Disclosure of Confidential Information. Except as provided in 
paragraph (c) of this section and as required by law, access to 
Confidential Information shall be limited to:
    (1) Those employees, agents, attorneys, consultants and independent 
contractors of the Designated Agent, subject to an appropriate 
confidentiality agreement, who are engaged in the collection and 
distribution of royalty payments hereunder and activities related 
thereto, who are not also employees or

[[Page 670]]

officers of a Copyright Owner or Performer, and who, for the purpose of 
performing such duties during the ordinary course of their work, require 
access to the records;
    (2) An independent and qualified auditor, subject to an appropriate 
confidentiality agreement, who is authorized to act on behalf of the 
Designated Agent with respect to the verification of a Licensee's 
statement of account pursuant to Sec. 262.6 or on behalf of a Copyright 
Owner or Performer with respect to the verification of royalty payments 
pursuant to Sec. 262.7;
    (3) The Copyright Office, in response to inquiries concerning the 
operation of the Designated Agent;
    (4) In connection with future Copyright Arbitration Royalty Panel 
proceedings under 17 U.S.C. 114(f)(2) and 112(e), and under an 
appropriate protective order, attorneys, consultants and other 
authorized agents of the parties to the proceedings, Copyright 
Arbitration Royalty Panels, the Copyright Office or the courts; and
    (5) In connection with bona fide royalty disputes or claims that are 
the subject of the procedures under Sec. 262.6 or Sec. 262.7, and 
under an appropriate confidentiality agreement or protective order, the 
specific parties to such disputes or claims, their attorneys, 
consultants or other authorized agents, and/or arbitration panels or the 
courts to which disputes or claims may be submitted.
    (e) Safeguarding of Confidential Information. The Designated Agent 
and any person identified in paragraph (d) of this section shall 
implement procedures to safeguard all Confidential Information using a 
reasonable standard of care, but no less than the same degree of 
security used to protect Confidential Information or similarly sensitive 
information belonging to such Designated Agent or person.