Man uses AI music, bots to make millions in royalties
A North Carolina resident, Michael Smith, is facing legal action for allegedly using an elaborate scheme involving artificial intelligence (AI) and bots to defraud music streaming platforms. The 52-year-old man is accused of uploading hundreds of thousands of AI-created songs on popular platforms like Apple Music, Spotify, and Amazon Music. He then used bots to play these tracks billions of times, amassing over $10 million in royalties since 2017. Smith could face up to 60 years in prison if convicted.
Smith faces multiple charges
On Wednesday, Smith got arrested and an indictment unsealed the same day accuses him of using bots to siphon royalty payments from these platforms. He is being charged with wire fraud conspiracy, wire fraud, and money laundering conspiracy. Each count bears a maximum sentence of 20 years in prison. The US Attorney's Office for the Southern District of New York has stated this as the first criminal case involving the use of bots to artificially inflate music streaming numbers.
Transition to AI-generated music
Initially, Smith uploaded his own music to the streaming services. However, he soon realized his catalog was not extensive enough to generate substantial royalties. After other attempts failed, he turned to AI-driven music in 2018. The indictment reveals that Smith collaborated with two other individuals (names not revealed) — the CEO of an AI music company and a music promoter — to produce hundreds of thousands of songs using AI technology.
Deceptive tactics and cover-up attempts
In return for a share of the revenue, the AI music company's CEO allegedly supplied thousands of tracks every week to Smith. He is accused of randomly generating song titles and artist names for these audio files. The indictment also alleges that Smith deceived streaming services by providing false names and other fake account details while setting up the bots. He also violated rules prohibiting streaming manipulation, making it appear as if the bot accounts were legitimate.
US attorney's statement on fraudulent scheme
US Attorney Damian Williams stated, "Michael Smith fraudulently streamed songs created with artificial intelligence billions of times in order to steal royalties." He added, "Through his brazen fraud scheme, Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders whose songs were legitimately streamed." The case highlights the potential misuse of technology in the music industry and raises concerns about the security measures in place on streaming platforms.
