SECTIONS 2500-2501 - California Statutes

CIVIL CODE

SECTION 2500-2501

2500. As used in this title:
(a) "Royalty recipient" means a party to a contract for the
furnishing of services in the production of sound recordings, as
defined in Section 101 of Title 17 of the United States Code, who has
the right to receive royalties under that contract.
(b) A "royalty reporting party" is the party obligated to pay
royalties to the royalty recipient under the contract described in
subdivision (a).

2501. Notwithstanding any provision of a contract described in
Section 2500:
(a) A royalty recipient may audit the books and records of the
royalty reporting party to determine if the royalty recipient earned
all of the royalties due the royalty recipient pursuant to the
contract, subject to the following:
(1) A royalty recipient may conduct an audit not more than once
per year.
(2) A royalty recipient shall request an audit within three years
after the end of a royalty earnings period under the contract.
(3) A royalty recipient may not audit a particular royalty
earnings period more than once.
(b) The royalty recipient shall retain a qualified royalty auditor
of the royalty recipient's choice to conduct an audit described in
this section.
(c) The royalty recipient may enter into a contingency fee
agreement with the auditor described in subdivision (b).
(d) A qualified royalty auditor may conduct individual audits of
the books and records of a royalty reporting party on behalf of
different royalty recipients simultaneously.
(e) Except as required by law, a qualified royalty auditor shall
not disclose any confidential information obtained solely during an
audit without the express consent of the party or parties to whom
that information is confidential. This subdivision shall not prohibit
the auditor from disclosing to the royalty recipient, or an agent of
the recipient, on behalf of whom the auditor is conducting the audit
information directly pertaining to that royalty recipient's
contract, as described in Section 2500.
(f) The provisions of subdivisions (a), (b), (c), (d), and (e) are
in addition to any other rights provided by a contract, as described
in Section 2500, between a royalty recipient and a royalty reporting
party.
(g) Nothing in subdivision (a), (b), (c), (d), or (e) shall be
deemed to extend any limitations period applicable to royalty
accounting or payments not specifically addressed in this section.
(h) Nothing in subdivision (a), (b), (c), (d), or (e) shall be
deemed to limit any rights provided by collective bargaining
agreement or by applicable state or federal law.