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Royalty Scheme

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North Carolina man gets 18 months for $10 million AI streaming royalty fraud

Michael Smith, 54, was sentenced to 18 months in prison after pleading guilty to running a scheme that used AI-generated songs and thousands of bot accounts to fraudulently generate billions of streams on Spotify, Apple Music, Amazon Music and YouTube Music between 2017 and 2024. Court documents say Smith worked with an AI music company's CEO and a music promoter, routing bot traffic through VPNs to dodge anti-fraud detection, and collected more than $10 million in royalties.