First level functions more or less like an NDA (non-disclosure agreement). It says that non-members (producers and others may have differences) can't disclose any private information they may learn in meetings or reading/viewing any assets of this commons enclosure or any others affiliated through reciprical commons agreement terms. The purpose of this level is to make it illegal for third parties to transfer and sell out data to others. To use the assets of a particular enclosure, you must be in compliance with the enclosure agreement.
Second level deals with the production and enclosure of derivative works. Through the mechanisms at this level, processes can be implemented to share value realized in the production of derived works that uses assets from a number of distinct commons encosures. Each enclosure will be able to implement rules at this level of the agreements to automate the calculation of realization shares in most cases such that currency flows related to productions can be fairly shared according to well known agreements.