[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: 37CFR382.6]

[Page 745-746]
 
              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 A_Preexisting Subscription Services
 
Sec. 382.6  Verification of royalty payments.

    (a) General. This section prescribes general rules pertaining to the 
verification of the payment of royalty fees to those parties entitled to 
receive such fees, according to terms promulgated by the Copyright 
Royalty Board.
    (b) Frequency of verification. Interested parties may conduct a 
single audit of the Collective during any given calendar year.
    (c) Notice of intent to audit. Interested parties must submit a 
notice of intent to audit the entity making the royalty payment with the 
Copyright Royalty Board, which shall publish in the Federal Register a 
notice announcing the receipt of the notice of intent to audit within 30 
days of the filing of the interested parties' notice. Such notification 
of interest shall also be served at the same time on the party to be 
audited.
    (d) Retention of records. The interested party requesting the 
verification

[[Page 746]]

procedure shall retain the report of the verification for a period of 
three years.
    (e) Acceptable verification procedure. An audit, including 
underlying paperwork, which was performed in the ordinary course of 
business according to generally accepted auditing standards by an 
independent auditor, shall serve as an acceptable verification procedure 
for all interested parties.
    (f) Costs of the verification procedure. The interested parties 
requesting the verification procedure shall pay for the cost of the 
verification procedure, unless an independent auditor concludes that 
there was an underpayment of five (5) percent or more, in which case, 
the entity which made the underpayment shall bear the costs of the 
verification procedure.
    (g) Interested parties. For purposes of this section, interested 
parties are those who are entitled to receive royalty payments pursuant 
to 17 U.S.C. 114(g)(2), or their designated agents.