(e) Information Accompanying Transmission in Digital Format.  Any person who transmits or otherwise communicates to the public any sound recording in digital format is not required under this chapter to transmit or otherwise communicate the information relating to the copyright status of the sound recording.  Any such person who does transmit or otherwise communicate such copyright status information shall transmit or communicate such information accurately.

Subchapter C Royalty Payments

Section 1003.  Obligation to make royalty payments

(a) Prohibition on Importation and Manufacture.  No person shall import into and distribute, or manufacture and distribute, any digital audio recording device or digital audio recording medium unless such person records the notice specified by this section and subsequently deposits the statements of account and applicable royalty payments for such device or medium specified in section 1004.

(b) Filing of Notice.  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 with the Register of Copyrights a notice with respect to such device or medium, in such form and content as the Register shall prescribe by regulation.

(c) Filing of Quarterly and Annual Statements of Account.

(1) Generally.  Any importer or manufacturer that distributes any digital audio recording device or digital audio recording medium that it manufactured or imported shall file with the Register of Copyrights, in such form and content as the Register shall prescribe by -regulation, such quarterly and annual statements of account with respect to such distribution as the Register shall prescribe by regulation.

(2) Certification, verification, and confidentiality.  Each such statement shall be certified as accurate by an authorized officer or principal of the importer or manufacturer.  The Register shall issue regulations to provide for the verification and audit of such statements and to protect the confidentiality of the information contained in such statements.  Such regulations shall provide for the disclosure, in confidence, of such statements to interested copyright parties.

(3) Royalty Payments.  Each such statement shall be accompanied by the royalty payments specified in section 1004.

Section 1004.  Royalty payments [2]

(a) Digital Audio Recording Devices.

(1) Amount of payment.  The royalty payment due under section 1003 for each digital audio recording device imported into and distributed in the United States, or manufactured and distributed in the United States, shall be 2 percent of the transfer price.  Only the first person to manufacture and distribute or import and distribute such device shall be required to pay the royalty with respect to such device.