Photo Credit: Markus Winkler
Following the sentencing of Michael Smith, the US Copyright Office launches a formal notice of inquiry (NOI) into music streaming fraud.
After the conviction and sentencing of music streaming fraudster Michael Smith, the U.S. Copyright Office published a notice of inquiry (NOI) on music streaming fraud. The NOI was prompted by Rep. Scott Fitzgerald. The NOI requests public input on the prevalence of streaming fraud across streaming platforms and how it may be affecting the music industry—but investigators might be surprised by the outcome.
A major focus of the investigation is how bad actors use generative AI and bot networks to fraudulently divert finite royalty funds away from legitimate human creators—essentially the modus operandi of Michael Smith. But various criminal networks have been spiking streaming plays for years without any serious repercussions, sometimes to launder money.
Perhaps even more shocking to the uninitiated, the music industry’s hidden truth is that both major and minor rights owners have also been manipulating streaming data for their own benefit for years.
Streaming fraud can occur in several different ways, including the use of bots farms, “click” farms, playlist stuffing, and account hijacking, all of which are mentioned in the NOI. To that end, digital music providers, music distributors, vendors, copyright owners, performance rights organizations, collective management organizations, and law enforcement agencies have engaged in efforts to prevent streaming fraud, with varying degrees of success.
The investigation also asks for input on specific questions addressing the factors that contribute to streaming fraud, resources and methods used to deter it and their effectiveness, and potential voluntary, statutory, or regulatory solutions to the problem.
Initial written comments must be received no later than November 23, 2026, at 11:59 PM ET, and written reply comments are due by December 21, 2026, at 11:59 PM ET.
The news follows the announcement by the Southern District of New York of Michael Smith’s 18-month prison sentence in addition to his repayment of more than $8 million that he siphoned from the royalty pool.
That sentence was applauded by industry groups, including the RIAA, which said that it appreciated the Court recognizing the significance of such “harmful conduct and the ill-gotten gains that come from the pockets of real artists, songwriters, and their label partners.”
Leave a Reply