A North Carolina musician named Michael Smith was arrested and charged with using artificial intelligence to create hundreds of thousands of songs that he streamed billions of times in order to collect over $10 million in royalty payments. Smith, 52, was arrested on fraud and conspiracy charges that could result in up to 60 years in prison. Authorities in New York asserted that Smith’s actions cheated musicians and songwriters out of royalty money that they were entitled to claim between 2017 and this year. Smith streamed songs created with artificial intelligence billions of times to “steal royalties.”
Authorities stated that Smith utilized automatic features to repeatedly stream the music in order to generate unlawful royalties. By creating thousands of accounts on streaming platforms, Smith was able to stream songs continuously, resulting in about 661,000 streams per day and annual royalties of $1.2 million. The royalties were taken from a pool that streaming platforms set aside for artists streaming sound recordings that embody musical compositions. Smith used artificial intelligence to create tens of thousands of songs to ensure that his fake streams would not raise suspicions with streaming platforms and music distribution companies.
According to an indictment filed in Manhattan federal court, Smith began working with the chief executive of an artificial intelligence music company and a music promoter in 2018 to create the songs that he streamed. Authorities said that Smith boasted in an email in February that he had generated over four billion streams and $12 million in royalties since 2019. Even when a music distribution company suggested that he might be participating in fraud in 2018, Smith denied any wrongdoing, insisting that there was no fraud involved.
Smith’s lawyer did not immediately respond to requests for comment. The charges against Smith include fraud and conspiracy, with potential penalties of up to 60 years in prison. The FBI in New York remains dedicated to targeting individuals who misuse advanced technology to gain illicit profits and exploit the genuine artistic talent of others. Smith’s actions of streaming songs created with artificial intelligence billions of times in order to collect royalties over the years exemplify the FBI’s commitment to identifying and prosecuting those who engage in fraudulent activities.
In an effort to evade detection, Smith created thousands of accounts on streaming platforms to stream songs continuously, resulting in significant royalties and fraudulent activities. By utilizing artificial intelligence to produce thousands of songs, Smith was able to maintain the appearance of legitimacy while carrying out fraudulent activities. Despite warnings from a music distribution company in 2018 suggesting fraudulent behavior, Smith denied any wrongdoing and continued to generate large sums of royalties through his illegal scheme. Smith’s case highlights the ongoing challenges posed by individuals who exploit technology for personal gain at the expense of others.
