124 STAT. 1234 PUBLIC LAW 111–175—MAY 27, 2010 (5) by adding at the end the following new paragraphs: ‘‘(5) 3.75 PERCENT RATE AND SYNDICATED EXCLUSIVITY SUR- CHARGE NOT APPLICABLE TO MULTICAST STREAMS.—The royalty rates specified in sections 256.2(c) and 256.2(d) of title 37, Code of Federal Regulations (commonly referred to as the ‘3.75 percent rate’ and the ‘syndicated exclusivity surcharge’, respec- tively), as in effect on the date of the enactment of the Satellite Television Extension and Localism Act of 2010, as such rates may be adjusted, or such sections redesignated, thereafter by the Copyright Royalty Judges, shall not apply to the secondary transmission of a multicast stream. ‘‘(6) VERIFICATION OF ACCOUNTS AND FEE PAYMENTS.—The Register of Copyrights shall issue regulations to provide for the confidential verification by copyright owners whose works were embodied in the secondary transmissions of primary trans- missions pursuant to this section of the information reported on the semiannual statements of account filed under this sub- section for accounting periods beginning on or after January 1, 2010, in order that the auditor designated under subpara- graph (A) is able to confirm the correctness of the calculations and royalty payments reported therein. The regulations shall— ‘‘(A) establish procedures for the designation of a quali- fied independent auditor— ‘‘(i) with exclusive authority to request verification of such a statement of account on behalf of all copyright owners whose works were the subject of secondary transmissions of primary transmissions by the cable system (that deposited the statement) during the accounting period covered by the statement; and ‘‘(ii) who is not an officer, employee, or agent of any such copyright owner for any purpose other than such audit; ‘‘(B) establish procedures for safeguarding all non- public financial and business information provided under this paragraph; ‘‘(C)(i) require a consultation period for the independent auditor to review its conclusions with a designee of the cable system; ‘‘(ii) establish a mechanism for the cable system to remedy any errors identified in the auditor’s report and to cure any underpayment identified; and ‘‘(iii) provide an opportunity to remedy any disputed facts or conclusions; ‘‘(D) limit the frequency of requests for verification for a particular cable system and the number of audits that a multiple system operator can be required to undergo in a single year; and ‘‘(E) permit requests for verification of a statement of account to be made only within 3 years after the last day of the year in which the statement of account is filed. ‘‘(7) ACCEPTANCE OF ADDITIONAL DEPOSITS.—Any royalty fee payments received by the Copyright Office from cable sys- tems for the secondary transmission of primary transmissions that are in addition to the payments calculated and deposited in accordance with this subsection shall be deemed to have been deposited for the particular accounting period for which Regulations. Time period.
