shall indicate that election in its database 
maintained under paragraph (9)(H) and 
shall take such other steps as may be re-
quired, in view of its payment arrange-
ments with digital music providers, to im-
plement the election. 
‘‘(iv) PAYMENTS.—For any musical 
work or share thereof that with respect to 
which a sound recording company makes 
an election under this subparagraph, the 
digital music provider shall make the ap-
propriate payments to the sound recording 
company in accordance with the contracts 
between the digital music provider and the 
sound recording company, and the sound 
recording company shall make the appro-
priate payments to copyright owners in ac-
cordance with its contracts for use of the 
musical work. 
‘‘(B) ERRORS.— 
‘‘(i) BY
DESIGNATED
AGENTS.—In 
any case in which a designated agent ac-
cepts in error payments for a use of a mu-
sical work with respect to which a sound 
recording company makes an election 
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erjones on PROD1PC72 with BILLS
under subparagraph (A), the sound record-
ing company may provide written notice of 
the error to the designated agent. If the 
designated agent fails to remedy the error 
by sending to the sound recording com-
pany, within 30 days after the date of the 
notice, the erroneously accepted funds, 
with interest calculated as provided in 
paragraph 
(10)(A)(iii), 
the 
designated 
agent shall be liable to the sound recording 
company in a civil action for the payment 
of the erroneously accepted funds, with in-
terest calculated as provided in paragraph 
(10)(A)(iii). The United States district 
courts shall have exclusive jurisdiction of 
such a civil action. The remedy provided in 
section 505 shall be available in such an 
action only if the designated agent did not 
act in good faith. 
‘‘(ii) BY SOUND RECORDING COMPA-
NIES.—In any case in which a sound re-
cording company makes an election under 
subparagraph (A) with respect to the use 
of a musical work in error, the copyright 
owner of the work may provide written no-
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erjones on PROD1PC72 with BILLS
tice of the error to the sound recording 
company. If the sound recording company 
fails to remedy the error by correcting the 
erroneous notice and sending to the copy-
right owner the difference between the roy-
alties that the copyright owner should have 
received from the designated agent and the 
royalties paid by the sound recording com-
pany based upon the erroneous election, 
with interest calculated as provided in 
paragraph (10)(A)(iii), the sound recording 
company shall be liable to the copyright 
owner in a civil action for the payment of 
the difference in royalties, with interest 
calculated 
as 
provided 
in 
paragraph 
(10)(A)(iii). The United States district 
courts shall have exclusive jurisdiction of 
such a civil action. The remedy provided in 
section 505 shall be available in such an 
action only if the sound recording company 
did not act in good faith. 
‘‘(iii) 
DESIGNATED
AGENTS
PRO-
TECTED.—A designated agent that acts in 
accordance with a notice provided under 
subparagraph (A)(i)(I), even if the notice 
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