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Federal Register / Vol. 86, No. 27 / Thursday, February 11, 2021 / Rules and Regulations
party to whom the information would otherwise be considered confidential.
The party seeking information from the mechanical licensing collective based on a claim that the information sought is a matter of public knowledge shall have the burden of proving that fact.
3 DLC Internal Information means sensitive financial or business information created by or collected by the digital licensee coordinator for purposes of its internal operations, such as personnel, procurement, or technology information. DLC Internal Information does not include:
i Information that is public or may be made public by law or regulation, information in the public musical works database prescribed by 17 U.S.C.
115d3E, and information disclosable through the digital licensee coordinators bylaws; or ii Information that at the time of delivery to the digital licensee coordinator is public knowledge, or is subsequently publicly disclosed by the party to whom the information would otherwise be considered confidential.
The party seeking information from the digital licensee coordinator based on a claim that the information sought is a matter of public knowledge shall have the burden of proving that fact.
c Disclosure of Confidential Information. 1 The mechanical licensing collective shall limit disclosure of Confidential Information to employees, agents, consultants, vendors, and independent contractors of the mechanical licensing collective who are engaged in the collectives authorized functions under 17 U.S.C.
115d and activities related directly thereto and who require access to Confidential Information for the purpose of performing their duties during the ordinary course of their work for the mechanical licensing collective, subject to an appropriate written confidentiality agreement. The mechanical licensing collective shall not disclose Confidential Information to members of the mechanical licensing collectives board of directors and committees, including the collectives Unclaimed Royalties Oversight Committee, or the digital licensee coordinators board of directors or committees.
2 Notwithstanding paragraph c1
of this section, the mechanical licensing collective shall be permitted to fulfill its disclosure obligations under section 115
including, but not limited to:
i Providing monthly reports to the digital licensee coordinator setting forth any significant nonblanket licensees of which the collective is aware that have failed to comply with the Offices
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regulations regarding submission of a notice of nonblanket activity for purposes of notifying the mechanical licensing collective that the licensee has been engaging in covered activities, or regarding the delivery of reports of usage for the making and distribution of phonorecords of nondramatic musical works; and ii Preparing and delivering royalty statements to musical work copyright owners that include the minimum information required in accordance with 37 CFR 210.29c, but without including additional Confidential Information that does not relate to the recipient copyright owner or relevant songwriter. Once a copyright owner receives a royalty statement from the mechanical licensing collective, there are no restrictions on the copyright owners ability to use the statement or disclose its contents.
A Members of the mechanical licensing collectives board of directors and committees shall not have access to musical work copyright owners royalty statements, except where a copyright owner discloses their own royalty statement to the members of the mechanical licensing collectives board of directors or committees.
Notwithstanding this paragraph, members of the mechanical licensing collectives board and committees are not restricted in accessing their own royalty statements from the mechanical licensing collective.
B The digital licensee coordinator, including members of the digital licensee coordinators board of directors and committees, shall not have access to musical work copyright owners royalty statements, except where a copyright owner discloses their own royalty statement to the mechanical licensing collectives board of directors or committees.
3 The digital licensee coordinator shall limit disclosure of Confidential Information to employees, agents, consultants, vendors, and independent contractors of the digital licensee coordinator who are engaged in the digital licensee coordinators authorized functions under 17 U.S.C. 115d5C
and activities related directly thereto and require access to Confidential Information for the purpose of performing their duties during the ordinary course of their work for the digital licensee coordinator, subject to an appropriate written confidentiality agreement. The digital licensee coordinator shall not disclose Confidential Information to members of the digital licensee coordinators board of directors and committees, or the mechanical licensing collectives board of directors or committees.

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4 In addition to the permitted disclosure of Confidential Information in this paragraph c, the mechanical licensing collective and digital licensee coordinator may disclose Confidential Information to:
i A qualified auditor or outside counsel, pursuant to 17 U.S.C.
115d4D, who is authorized to act on behalf of the mechanical licensing collective with respect to verification of royalty payments by a digital music provider operating under the blanket license, subject to an appropriate written confidentiality agreement;
ii A qualified auditor or outside counsel, pursuant to 17 U.S.C.
115d3L, who is authorized to act on behalf of a copyright owner or group of copyright owners with respect to verification of royalty payments by the mechanical licensing collective, subject to an appropriate written confidentiality agreement; and iii Attorneys and other authorized agents of parties to proceedings before federal courts, the Copyright Office, or the Copyright Royalty Judges, or when such disclosure is required by court order or subpoena, subject to an appropriate protective order or agreement.
5 With the exception of persons receiving information pursuant to paragraph c4 of this section, anyone to whom the mechanical licensing collective or digital licensee coordinator discloses Confidential Information as permitted in section shall not disclose such Confidential Information to anyone else except as expressly permitted in this section.
d Use of Confidential Information.
1 The mechanical licensing collective shall not use any Confidential Information for any purpose other than the collectives authorized functions under 17 U.S.C. 115d and activities related directly thereto. Anyone to whom the mechanical licensing collective discloses Confidential Information as permitted in this section shall not use any Confidential Information for any purpose other than in performing their duties during the ordinary course of their work for the mechanical licensing collective or as otherwise permitted under paragraph c4 of this section.
2 The digital licensee coordinator shall not use any Confidential Information for any purpose other than its authorized functions under 17 U.S.C.
115d5C and activities related directly thereto. Anyone to whom the digital licensee coordinator discloses Confidential Information as permitted in this section shall not use any Confidential Information for any
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