(a) Definition. For purposes of this subpart, ``Confidential Information'' shall include the statements of account and any information contained therein, including the amount of royalty payments, and any information pertaining to the statements of account reasonably designated as confidential by the Licensee submitting the statement.
(b) Exclusion. Confidential Information shall not include documents or information that at the time of delivery to the Collective are public knowledge. The party claiming the benefit of this provision shall have the burden of proving that the disclosed information was public knowledge.
(c) Use of Confidential Information. In no event shall the Collective use any Confidential Information for any purpose other than royalty collection and distribution and activities related directly thereto.
(d) Disclosure of Confidential Information. Access to Confidential Information shall be limited, subject to an appropriate confidentiality agreement, to:
(1) Those employees, agents, attorneys, consultants and independent contractors of the Collective, who are engaged in the collection and distribution of royalty payments hereunder and activities related thereto, for the purpose of performing such duties during the ordinary course of their work and who require access to the Confidential Information;
(2) An independent and Qualified Auditor, who is authorized to act on behalf of the Collective with respect to verification of a Licensee's statement of account pursuant to Sec. 382.15 or on behalf of a Copyright Owner or Performer with respect to the verification of royalty distributions pursuant to Sec. 382.16;
(3) Copyright Owners and Performers, including their designated agents, whose works have been used under the statutory licenses set forth in 17 U.S.C. 112(e) and 114 by the Licensee whose Confidential Information is being supplied, and including those employees, agents, attorneys, consultants and independent contractors of such Copyright Owners and Performers and their designated agents, for the purpose of performing their duties during the ordinary course of their work and who require access to the Confidential Information; and
(4) In connection with future proceedings under 17 U.S.C. 112(e) and 114 before the Copyright Royalty Judges, and under an appropriate protective order, attorneys, consultants and other authorized agents of the parties to the proceedings or the courts.
(e) Safeguarding of Confidential Information. The Collective and any person identified in paragraph (d) of this section shall implement procedures to safeguard against unauthorized access to or dissemination of any Confidential Information using a reasonable standard of care, but no less than the same degree of security used to protect Confidential Information or similarly sensitive information belonging to the Collective or person. [73 FR 4102, Jan. 24, 2008, as amended at 78 FR 23099, Apr. 17, 2013]