17 U.S.C. § 1003 — Obligation to make royalty payments

(a) Prohibition on importation and manufacture. A person may not import and distribute, or manufacture and distribute, a digital audio recording device or medium unless the person records the notice required by this section and later deposits the required account statements and royalties under section 1004. (b) Filing of notice. An importer or manufacturer must file a notice with the Register of Copyrights for a device or medium in a product category or using a technology for which that importer or manufacturer has not already filed a notice under this subsection. The notice must have the form and content required by the Register’s regulations. (c) Filing of quarterly and annual statements of account. (1) An importer or manufacturer that distributes a device or medium it imported or manufactured must file with the Register, in the required form and content, the quarterly and annual account statements that the Register requires for that distribution. (2) An authorized officer or principal of the importer or manufacturer must certify each statement as accurate. The Register must issue regulations for checking and auditing the statements and protecting their confidential information. The regulations must allow the statements to be disclosed confidentially to interested copyright parties. (3) Each statement must include the royalty payments required by section 1004.