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First US Streaming Fraud Conviction: Michael Smith Sentenced to 18 Months for AI Bot Scheme
technology-and-law4 days ago

First US Streaming Fraud Conviction: Michael Smith Sentenced to 18 Months for AI Bot Scheme

Michael Smith, a 54-year-old North Carolina musician, was sentenced to 18 months in federal prison and ordered to forfeit $8.1 million for the first-ever US prosecution of music streaming fraud. From 2017 to 2024, Smith used AI-generated songs and thousands of bot accounts to generate billions of fake streams, siphoning royalties from legitimate artists. The case prompted the US Copyright Office to launch a formal inquiry into AI-driven streaming fraud, with public comments due in November 2026.

via The Quietus|
#ai-music#copyright-office#michael-smith
First AI Streaming Fraud Conviction: North Carolina Man Sentenced to 18 Months for $8M Royalty Theft
technology-and-law5 days ago

First AI Streaming Fraud Conviction: North Carolina Man Sentenced to 18 Months for $8M Royalty Theft

Michael Smith, a 54-year-old North Carolina resident, was sentenced to 18 months in federal prison for the first criminal conviction involving AI-assisted music streaming fraud. Between 2017 and 2024, Smith used thousands of bots and AI-generated songs to artificially inflate streams on platforms like Spotify and Apple Music, stealing approximately $8 million in royalties. The US Department of Justice highlighted the case as a landmark effort to deter fraud that dilutes earnings for genuine artists. While prosecutors sought a longer sentence, the judge imposed 18 months plus two years of supervised release, with Smith required to forfeit the illicit proceeds.

via Ars Technica|
#ai-music#doj#michael-smith
Michael Smith Sentenced to 18 Months for AI Streaming Fraud
legal-and-technology6 days ago

Michael Smith Sentenced to 18 Months for AI Streaming Fraud

Michael Smith, a 54-year-old North Carolina musician, was sentenced to 18 months in federal prison on October 6, 2026, for the first-ever criminal conviction involving AI-assisted streaming fraud. Smith pleaded guilty in March to wire fraud conspiracy after admitting he used bots to generate billions of fake streams for AI-generated songs between 2017 and 2024, collecting over $8 million in royalties. Judge John G. Koeltl in Manhattan rejected the defense’s request for probation and the prosecution’s demand for 46 months, ordering Smith to serve a year and a half in jail followed by two years of supervised release. He must also forfeit $8,091,843.64. The case highlights the growing threat of automated bots inflating play counts on platforms like Spotify and Apple Music, diverting funds from legitimate artists.

via Pitchfork|
#ai-music#doj#legal-and-technology
Judge Sentences AI Music Fraudster to 18 Months in Landmark Ruling
legal-and-music-industry6 days ago

Judge Sentences AI Music Fraudster to 18 Months in Landmark Ruling

Michael Smith, a 54-year-old musician from North Carolina, was sentenced to 18 months in federal prison on October 6, 2026, for the first-ever criminal conviction involving AI-assisted streaming fraud. Smith pleaded guilty in March to wire fraud conspiracy after admitting he used bots to generate billions of fake streams for AI-generated songs between 2017 and 2024, collecting over $8 million in royalties. Judge John G. Koeltl in Manhattan rejected the defense’s request for probation and the prosecution’s demand for 46 months, ordering Smith to serve a year and a half in jail followed by two years of supervised release. He must also forfeit $8,091,843.64. The case highlights the growing threat of automated bots inflating play counts on platforms like Spotify and Apple Music, diverting funds from legitimate artists.

via Billboard|
#ai-music#federal-sentencing#legal-and-music-industry