US Copyright Office Launches Inquiry into Music Streaming Fraud

What's Happening

The US Copyright Office (USCO) has initiated a public inquiry into music streaming fraud, focusing on its methods, economic impact, and connection to AI-generated music. This move follows a request from Representative Scott Fitzgerald, who highlighted the potential for AI to be exploited by criminals to commit streaming fraud and divert royalties from legitimate rights holders.

Fitzgerald's letter cited Deezer's findings that up to 85% of streams from fully AI-generated tracks were fraudulent, and that nearly half of daily music uploads on the platform were AI-generated. The inquiry also comes after Michael Smith was sentenced to 18 months in prison for using bot accounts to stream AI-generated songs, fraudulently collecting $10 million in royalties.

Industry Concerns

The USCO's notice identifies several key areas of concern, including the dilution of the royalty revenue pool, the impact on playlist placement, and the reliability of streaming data used by artists and venues. It also questions whether current industry practices inadvertently contribute to streaming fraud and seeks input on the effectiveness of anti-fraud measures such as content verification and customer verification.

The inquiry also explores the potential for streaming fraud to be used by organized crime for money laundering, referencing a Swedish report and statements from industry leaders.

What this means for you

As an independent artist, it's crucial to stay informed about these developments and understand the potential risks posed by streaming fraud. The inquiry aims to gather insights that could lead to more robust protections for artists and rights holders, ensuring that streaming platforms remain fair and trustworthy.

While the inquiry is underway, consider familiarizing yourself with existing anti-fraud measures and best practices to protect your work and royalties.

Source: Music Business Worldwide