This law defines two important terms in the context of music production royalty contracts. A "royalty recipient" is someone who created or helped create a sound recording and is entitled to royalties from it. The "royalty reporting party" is the person or company responsible for paying those royalties to the creator as outlined in their contract.

This section allows someone who receives royalties (money from something, like a book or song) to check if they're getting paid the right amount. They can do this by hiring an auditor to look at the records once a year, and they have three years to request the audit for any given period. They can't audit the same period more than once. The auditor they choose can work for other royalty recipients at the same time and can agree to be paid based on what they find. Any confidential information the auditor learns must be kept private unless the royalty recipient permits sharing. This section adds to any other rights they might already have according to their contract or other laws, and it doesn't change any time limits or other rights under collective bargaining agreements or other laws.