was erroneously provided, shall not be sub-
ject to a legal claim by a copyright owner 
based upon or arising out of the actions of 
the designated agent with respect to the 
notice. 
‘‘(iv) CONSEQUENCES
FOR
DIGITAL 
MUSIC PROVIDERS AND SOUND RECORDING 
COMPANIES.—Any digital music provider 
that has a valid license under this sub-
section with the appropriate designated 
agent, that acts in good faith with respect 
to an election under subparagraph (A) by 
a sound recording company, and that re-
ports activity and makes payments under 
this subsection to the designated agent or 
sound recording company in accordance 
with the notice of the election under sub-
paragraph (A)(i)(I), shall not be subject to 
any liability, including any action for copy-
right infringement of musical works alleg-
ing the violation of reproduction or dis-
tribution rights, to the extent such action 
is based on activity so reported for which 
all payments due have been made. In any 
case in which a digital music provider or a 
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sound recording company does not make 
the required payments for the use of a mu-
sical work, this paragraph neither expands 
nor limits the rights of any person under 
the applicable contracts, this title, or other 
applicable law. 
‘‘(C) EXCLUSION ERRORS.— 
‘‘(i) NOT EXCLUDED.—In any case in 
which a musical work could have been ex-
cluded pursuant to subparagraph (A) but 
was not due to uncertainty concerning 
ownership of the copyright of the musical 
work or the application of a contract de-
scribed in subsection (c)(3)(E)(ii), or in 
any case in which a digital music provider 
makes payments to a designated agent for 
use of a musical work excluded under sub-
paragraph (A), the designated agent shall 
make payments to the appropriate person 
as if the exclusion under subparagraph (A) 
had applied on the date of the enactment 
of the Section 115 Reform Act of 2006, 
unless an agreement between the des-
ignated agent and the appropriate person 
provides otherwise. 
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‘‘(ii) EXCLUDED.—In any case in 
which a musical work was excluded pursu-
ant to subparagraph (A) in error— 
‘‘(I) a sound recording company 
acting in good faith with regard to the 
exclusion shall only be liable for the 
payment of amounts that otherwise 
would have been payable under this 
subsection, plus interest as described 
in paragraph (10)(A)(iii)(II); and 
‘‘(II) a licensee acting in good 
faith with regard to the exclusion 
shall not be liable because of such 
error. 
‘‘(14) DEFINITIONS.—In this subsection: 
‘‘(A) ADMINISTRATIVE
FEES.—The term 
‘administrative fees’ means any fees that are 
collected or deducted by a designated agent to 
cover licensing administrative costs or other ad-
ministrative costs. 
‘‘(B) 
COPYRIGHT
OWNER.—The 
term 
‘copyright owner’ means a copyright owner, as 
defined in section 101, that is a natural person 
or legally recognized entity that owns or con-
trols an interest or share in 1 or more copy-
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righted nondramatic musical works subject to 
licensing under this section. 
‘‘(C) DIGITAL
MUSIC
PROVIDER.—The 
term ‘digital music provider’ means a person 
that— 
‘‘(i) with respect to a service engaging 
in activities licensed under this sub-
section— 
‘‘(I) contracts with or has a di-
rect relationship with the end users of 
the service, and controls what, if any, 
consideration is received from end 
users or others for the service; 
‘‘(II) controls how musical con-
tent is bundled with other musical or 
nonmusical 
content 
and 
offered 
through the service; 
‘‘(III) is able to fully report on 
all revenues and consideration re-
ceived by or credited to the service; 
and 
‘‘(IV) is able to fully report on all 
elements of music usage by the service 
(or procure such reporting); or 
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‘‘(ii) with respect to hybrid offerings 
only, makes and distributes a hybrid offer-
ing, and— 
‘‘(I) controls how musical content 
is bundled with other musical and 
nonmusical content in the hybrid of-
fering; 
‘‘(II) is able to fully report on all 
revenues and consideration received 
by or credited to such person with re-
spect to the hybrid offering; and 
‘‘(III) is able to fully report on 
all elements of music usage in the hy-
brid offering (or procure such report-
ing). 
‘‘(D) ERROR
TOLERANCE
STANDARD.— 
The term ‘error tolerance standard’ means the 
maximum percentage, of all data that a licensee 
is required to report under this subsection 
under its license in any statutory reporting pe-
riod, that is permitted to be inaccurate, 
unreadable, or missing, or any combination 
thereof, as determined under regulations issued 
to carry out this subsection. 
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