[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: 37CFR382.13]

[Page 747-749]
 
              TITLE 37--PATENTS, TRADEMARKS, AND COPYRIGHTS
 
        CHAPTER III--COPYRIGHT ROYALTY BOARD, LIBRARY OF CONGRESS
 
  PART 382_RATES AND TERMS FOR DIGITAL TRANSMISSIONS OF SOUND RECORDINGS AND THE REPRODUCTION OF EPHEMERAL RECORDINGS BY PREEXISTING SUBSCRIPTION SERVICES AND 
PREEXISTING SATELLITE DIGITAL AUDIO RADIO SERVICES--Table of Contents
 
      Subpart B_Preexisting Satellite Digital Audio Radio Services
 
Sec. 382.13  Terms for making payment of royalty fees and statements of account.

    (a) Payment to the Collective. A Licensee shall make the royalty 
payments due under Sec. 382.12 to the Collective.
    (b) Designation of the Collective. (1) Until such time as a new 
designation is made, SoundExchange, Inc., is designated as the 
Collective to receive statements of account and royalty payments from 
Licensees due under Sec. 382.12 and to distribute such royalty payments 
to each Copyright Owner and

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Performer, or their designated agents, entitled to receive royalties 
under 17 U.S.C. 112(e) or 114.
    (2) If SoundExchange, Inc. should dissolve or cease to be governed 
by a board consisting of equal numbers of representatives of Copyright 
Owners and Performers, then it shall be replaced by a successor 
Collective upon the fulfillment of the requirements set forth in 
paragraph (b)(2)(i) of this section.
    (i) By a majority vote of the nine Copyright Owner representatives 
and the nine Performer representatives on the SoundExchange board as of 
the last day preceding the condition precedent in paragraph (b)(2) of 
this section, such representatives shall file a petition with the 
Copyright Royalty Judges designating a successor to collect and 
distribute royalty payments to Copyright Owners and Performers entitled 
to receive royalties under 17 U.S.C. 112(e) or 114 that have themselves 
authorized the Collective.
    (ii) The Copyright Royalty Judges shall publish in the Federal 
Register within 30 days of receipt of a petition filed under paragraph 
(b)(2)(i) of this section an order designating the Collective named in 
such petition.
    (c) Monthly payments. A Licensee shall make any payments due under 
Sec. 382.12 on a monthly basis on or before the 45th day after the end 
of each month for that month, except that payments due under Sec. 
382.12 for the period beginning January 1, 2007, through the last day of 
the month in which the Copyright Royalty Judges issue their final 
determination adopting these rates and terms shall be due 45 days after 
the end of such period. All payments shall be rounded to the nearest 
cent.
    (d) Late payments and statements of account. A Licensee shall pay a 
late fee of 1.5% per month, or the highest lawful rate, whichever is 
lower, for any payment and/or statement of account received by the 
Collective after the due date. Late fees shall accrue from the due date 
until payment is received by the Collective.
    (e) Statements of account. Any payment due under Sec. 382.12 shall 
be accompanied by a corresponding statement of account. A statement of 
account shall contain the following information:
    (1) Such information as is necessary to calculate the accompanying 
royalty payments;
    (2) The name, address, business title, telephone number, facsimile 
number (if any), electronic mail address and other contact information 
of the person to be contacted for information or questions concerning 
the content of the statement of account;
    (3) The handwritten signature of a duly authorized officer or 
representative of the Licensee;
    (4) The printed or typewritten name of the person signing the 
statement of account;
    (5) The date of signature;
    (6) The title or official position held in relation to the Licensee 
by the person signing the statement of account;
    (7) A certification of the capacity of the person signing; and
    (8) A statement to the following effect:

    I, the undersigned officer or representative of the Licensee, have 
examined this statement of account and hereby state that it is true, 
accurate, and complete to my knowledge after reasonable due diligence.

    (f) Distribution of royalties. (1) The Collective shall promptly 
distribute royalties received from Licensees to Copyright Owners and 
Performers, or their designated agents, that are entitled to such 
royalties. The Collective shall only be responsible for making 
distributions to those Copyright Owners, Performers, or their designated 
agents who provide the Collective with such information as is necessary 
to identify the correct recipient. The Collective shall distribute 
royalties on a basis that values all performances by a Licensee equally 
based upon the information provided under the reports of use 
requirements for Licensees contained in Sec. 370.3 of this chapter.
    (2) If the Collective is unable to locate a Copyright Owner or 
Performer entitled to a distribution of royalties under paragraph (f)(1) 
of this section within 3 years from the date of payment by a Licensee, 
such royalties shall be handled in accordance with Sec. 382.17.

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    (g) Retention of records. Books and records of a Licensee and of the 
Collective relating to payments of and distributions of royalties shall 
be kept for a period of not less than the prior 3 calendar years.