13 1 2 medium specified by this section and section 1012 of this title, or "(2) complies with the applicable notice, statement of account, and payment obligations under a negotiated arrangement authorized pursuant to section 1016 of this title. “(b) FILING OF NOTICE.— "(1) GENERALLY.-The importer or manufacturer of any digital audio recording device or digital audio recording medium, within a product category or utilizing a technology with respect to which such manufacturer or importer has not previously filed a notice under this subsection, shall file a notice with the Register, no later than 45 days after the commencement of the first distribution in the United States of such device or medium, in such form as the Register shall prescribe by regulation. "(2) CONTENTS.-Such notice shall "(A) set forth the manufacturer's or im porter's identity and address, "(B) identify such product category and technology, and "(C) identify any trade or business names, trademarks, or like indicia of origin that the importer or manufacturer uses or intends to use •HR 3204 IH 1 2 3 4 14 in connection with the importation, manufac ture, or distribution of such device or medium in the United States. "(c) FILING OF QUARTERLY STATEMENTS OF AC 5 COUNT. “(1) GENERALLY.-Any importer or manufacturer that distributed during a given quarter any digital audio recording device or digital audio recording medium that it manufactured or imported shall file with the Register, in such form as the Register shall prescribe by regulation, a quarterly statement of account specifying, by product category, technolo gy, and model, the number and transfer price of all digital audio recording devices and digital audio re cording media that it distributed during such quar ter. "(2) TIMING, CERTIFICATION, AND ROYALTY PAYMENTS.-Such statement shall "(A) be filed no later than 45 days after the close of the period covered by the statement; "(B) be certified as accurate by an author ized officer or principal of the importer or man ufacturer; •HR 3204 I 1 2 3 4 5 6 7 8 15 "(C) be accompanied by the total royalty payment due for such period pursuant to section 1012 of this title. "(3) PERIOD COVERED.-The quarterly statements of account may be filed on either a calendar or fiscal year basis, at the election of the manufacturer or importer. "(d) FILING OF ANNUAL STATEMENTS OF AC 9 COUNT. 10 11 12 13 14 15 16 17 “(1) GENERALLY.-Any importer or manufacturer that distributed during a given calendar or fiscal year (as applicable) any digital audio recording device or digital audio recording medium that it manufactured or imported shall also file with the Register a cumulative annual statement of account, in such form as the Register shall prescribe by regulation. "(2) TIMING AND CERTIFICATION.-Such statement shall be filed no later than 60 days after the close of such calendar or fiscal year, and shall be 21 certified as accurate by an authorized officer or 22 principal of the importer or manufacturer. "(3) INDEPENDENT REVIEW AND CERTIFICATION.-The annual statement of account shall be re viewed and, pursuant to generally accepted auditing •HR 3204 IH 16 standards, certified by an independent certified pub lic accountant selected by the manufacturer or im porter as fairly presenting the information contained therein, on a consistent basis and in accordance with the requirements of this chapter. "(4) RECONCILIATION OF ROYALTY PAYMENT.-The cumulative annual statement of ac count shall be accompanied by any royalty payment due under section 1012 of this title that was not previously paid under subsection (c) of this section. "(e) VERIFICATION. "(1) GENERALLY. "(A) The Register shall, after consulting with interested copyright parties and interested manufacturing parties, prescribe regulations specifying procedures for the verification of statements of account filed pursuant to this section. "(B) Such regulations shall permit interested copyright parties to select independent certified public accountants to conduct audits in order to verify the accuracy of the information contained in the statements of account filed by manufacturers and importers. "(C) Such regulations shall also •HR 3204 IH 17 "(i) specify the scope of such inde pendent audits; and “(ii) establish a procedure by which interested copyright parties will coordinate the engagement of such independent certified public accountants, in order to ensure that no manufacturer or importer is audited more than once per year. "(D) All such independent audits shall be conducted at reasonable times, with reasonable advance notice, and shall be no broader in scope than is reasonably necessary to carry out the purposes of this subsection in accordance with generally accepted auditing standards. “(2) INDEPENDENT CERTIFICATION.-The results of all such independent audits shall be certified as fairly presenting the information contained therein, on a consistent basis and in accordance with the requirements of this chapter and generally accepted auditing standards, by the certified public accountant responsible for the audit. The certification and results shall be filed with the Register. “(3) ACCESS TO DOCUMENTS IN EVENT OF DISPUTE. In the event of a dispute concerning the amount of the royalty payment due from a manufac HR 3204 IH- -3 |