disclose such information to any other 
person in a form that can be readily 
associated with a licensee except to 
the extent permitted by written agree-
ment of the licensee. 
‘‘(II) EXCEPTION.—Subclause (I) 
does not prevent a designated agent 
from providing information with re-
spect to a licensee— 
‘‘(aa) to the legal and finan-
cial advisors of the designated 
agent or to an accountant or 
auditor rendering services relat-
ing to this subsection; or 
‘‘(bb) to the extent nec-
essary in connection with a bona 
fide dispute or legal claim or pro-
ceeding, in which case the des-
ignated agent shall make reason-
able efforts to obtain confidential 
treatment of such information 
and, unless precluded by oper-
ation of law, shall provide written 
notice to the licensee of any im-
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pending disclosure of the infor-
mation. 
‘‘(iii) INTEREST.— 
‘‘(I) IN
GENERAL.—A licensee 
who has failed to make a payment re-
quired under this subsection by the 
due date to a designated agent (in-
cluding as specified in a notice of pay-
ment deficiency or default, as deter-
mined in a royalty compliance exam-
ination under subparagraph (B), or as 
required by a determination of the 
Copyright Royalty Judges), shall pay 
to the designated agent interest on 
the overdue amount, at an annual 
rate of the Federal funds rate plus 5 
percent, 
such 
interest 
to 
accrue 
monthly from the date payment was 
due until the date payment is received 
by the designated agent. 
‘‘(II) 
DEFINITION.—In 
this 
clause, the term ‘Federal funds rate’ 
means the interest rate established by 
the Federal Reserve at which deposi-
tory institutions lend balances at the 
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Federal Reserve to other depository 
institutions overnight. The Federal 
funds rate for any 1-month period 
during which interest accrues under 
clause (i) is the Federal funds rate in 
effect on the first day of that 1-month 
period. 
‘‘(iv) 
PROMOTIONAL
USE
EXEMP-
TIONS.— 
‘‘(I) FREE
PROMOTIONAL
USES 
BY
DIGITAL
MUSIC
PROVIDERS.—A 
digital music provider shall not be re-
quired to pay royalties under this sub-
section for a free promotional use of 
a musical work in the form of an 
interactive 
stream 
or 
limited 
download, if the digital music provider 
is authorized to do so by the owner or 
licensee of the applicable sound re-
cording, and reports to all appropriate 
designated agents such use as a free 
promotional use in its quarterly re-
ports under subparagraph (A)(i). 
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‘‘(II) 
OTHER
FREE
PRO-
MOTIONAL USES BY SOUND RECORD-
ING OWNERS.— 
‘‘(aa) 
AUTHORITY.—The 
owner or licensee of a sound re-
cording who seeks to offer free 
promotional uses of the sound re-
cording in the form of an inter-
active stream or limited download 
through a third party not li-
censed as a digital music pro-
vider under this subsection may 
offer such free promotional uses 
if the owner or licensee (as the 
case may be)— 
‘‘(AA) files a notice of 
such free promotional use, 
at the same time that a re-
port 
under 
subparagraph 
(A)(i) is filed for each quar-
terly reporting period in 
which such free promotional 
use is provided, with the 
designated agent that rep-
resents the musical work (or 
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share thereof) embodied in 
the sound recording; 
‘‘(BB) includes in the 
notice the identity of the 
work in question, the date or 
dates of the free promotional 
uses, the types of uses being 
offered, the third party that 
is distributing the uses to 
end users, the street and 
internet addresses of the 
third party, and such other 
information as the Register 
of Copyrights may prescribe 
by regulation. 
‘‘(bb) REQUEST FOR DOCU-
MENTATION.—By written notice, 
a designated agent may request 
the owner or licensee of the 
sound recording to provide docu-
mentation demonstrating that a 
use of a musical work qualifies as 
a free promotional use under this 
clause. If the owner or licensee 
fails to provide such documenta-
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