Criminal or Just Clever

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Man Charged With $10 Million Streaming Music Scam Using AI-Generated Songs

In a scheme federal authorities are labeling “brazen fraud,” a North Carolina man allegedly used artificial intelligence to create hundreds of thousands of songs, then continuously streamed them using bot accounts to generate unlawful royalty payments totaling more than $10 million.

Michael Smith, who is 52 years old and a musician himself, was arrested on Wednesday, according to the United States Attorney’s Office, and charged with three crimes. Law enforcement officials call the case the first of its kind involving artificially inflated music streaming.

In a scheme federal authorities are labeling “brazen fraud,” a North Carolina man allegedly used artificial intelligence to create hundreds of thousands of songs, then continuously streamed them using bot accounts to generate unlawful royalty payments totaling more than $10 million.

Michael Smith, who is 52 years old and a musician himself, was arrested on Wednesday, according to the United States Attorney’s Office, and charged with three crimes. Law enforcement officials call the case the first of its kind involving artificially inflated music streaming.

“The defendant’s alleged scheme played upon the integrity of the music industry by a concerted attempt to circumvent the streaming platforms’ policies,” FBI Acting Assistant Director Christie M. Curtis said in a statement jointly released by the FBI and the United States Attorney for the Southern District of New York. “The FBI remains dedicated to plucking out those who manipulate advanced technology to receive illicit profits and infringe on the genuine artistic talent of others.”

Scamming Spotify, YouTube Music And More

The statement announced the unsealing of the indictment against Smith, who lives in the Charlotte area. Filed in U.S. District Court in New York, it alleges that between 2017 and this year, Smith fraudulently inflated music streams on services such as Spotify, Amazon Music, Apple Music and YouTube Music.

It was not immediately clear who Smith’s attorney is to get a comment on the charges.

Streaming subscriptions in the U.S. were up 3% to 99 million over the first half of 2024, according to the Recording Industry Association of America’s 2024 Mid-Year Music Industry Revenue Report. During that time, the report says, streaming services grew 4% at retail value to a record $7.3 billion.

https://www.forbes.com/sites/lesliekatz/2024/09/08/man-charged-with-10-million-streaming-scam-using-ai-generated-songs/

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ooops wrong news thread if a mod cares to move it 😀

[Mekong]

I’d like to see what law / offence he will be charged under because as of yet using Spotify Bots can get you banned from Spotify but they are not illegal 

Spotify Bots

Also uploading AI generated music is allowed by Spotify

AI Uploads Spotify

So, Spotify allows AI generated uploads and streaming bots aren’t illegal at this time. They could bring in laws to stop this happening I the future but retrospective laws which worsen the plight of the individual, also know as “ex post facto” laws are mot allowed in many jurisdictions, the USA included.

I would say not criminal at all and just very clever, I take my hat off to Mr Smith 

[Coss]

10 hours ago, bust said:

ooops wrong news thread if a mod cares to move it 😀

Too much effort, unless someone gets red-faced about it, it can stay, normal programming will no doubt, resume shortly.

 

[Coss]

3 hours ago, Mekong said:

... very clever, I take my hat off to Mr Smith 

Ditto -

I don't know if anyone has seen, the Ai "treatments" of some of our cultural favourites from times gone by, no doubt racking up the views on youtube.

vis The Jetsons

 

 

 

 

[bust]

I'm so tempted to click play to see how Judy scrubbed up