North Carolina man charged in $10 million AI music streaming fraud
A North Carolina man has been charged with orchestrating a complex fraud scheme using artificial intelligence and bots to manipulate music streaming platforms, allegedly stealing over $10 million in royalties. This case marks the first criminal investigation involving AI in music streaming fraud.
Michael Smith is accused of creating hundreds of thousands of AI-generated songs under fake band names such as “Callous Post,” “Calorie Screams” and “Calvinistic Dust.”
These songs, with titles like “Zygotic Washstands” and “Zymotechnical,” were streamed billions of times on platforms like Spotify, Apple Music and Amazon Music using bots Smith programmed, according to federal prosecutors.
Smith’s scheme, which ran from 2017 through 2024, began with him uploading his own music, but he quickly expanded by partnering with an AI music company and a promoter in 2018.
In exchange for a share of the profits, the AI company generated thousands of tracks that Smith streamed using 10,000 fake accounts he created. Prosecutors said Smith spread these streams across a vast catalog of songs to avoid detection.
To further mask the fraud, Smith allegedly targeted multi-account family plans and collaborated with co-conspirators to create additional bot accounts. At its peak, the operation generated over 661,000 streams per day, earning Smith more than $1.2 million annually.
Smith’s fraudulent royalties were funneled through U.S.-based bank accounts and corporate debit cards registered under fake names, prosecutors said. Between 2020 and 2023, Smith allegedly transferred $1.3 million in royalties to these accounts.
“Through his brazen fraud scheme, Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders,” U.S. Attorney Damian Williams said.
Smith, who was arrested in Cornelius, North Carolina, faces multiple charges, including wire fraud and money laundering conspiracy. Each charge carries a maximum sentence of 20 years in prison.
California passes landmark bill on AI replication of deceased performers
California lawmakers passed legislation requiring consent for AI replication of dead performers. The bill is a significant victory for SAG-AFTRA in its ongoing fight against what it sees as unchecked AI usage in entertainment.
As the entertainment industry grapples with the implications of AI technology, the legislation requires consent from the owner of the estate before a dead actor or performer’s likeness can be replicated by artificial intelligence. The requirements aim to protect performers’ rights in the digital age and shape the future relationship between artificial intelligence and creative professionals.
The bill covers a wide range of media, including films, TV shows, video games, audiobooks, commercials, and sound recordings with damages for violations of at least $10,000.
Earlier this year, hip-hop icon Tupac Shakur’s estate threatened to sue Drake over the unauthorized use of Tupac’s likeness in a diss track which featured an AI-generated form of the late rapper’s voice.
“Not only is the record a flagrant violation of Tupac’s publicity and the estate’s legal rights, it is also a blatant abuse of the legacy of one of the greatest hip-hop artists of all time,” a lawyer for Tupac’s estate wrote.
Gov. Gavin Newsom has until Sept. 30 to sign the bill into law.
Campaign music dustup: Isaac Hayes’ family sues, Celine Dion speaks out
Former President Donald Trump’s recent rally in Montana attracted thousands of supporters as the Republican nominee looks to hit the right note with voters ahead of Election Day. However, Trump and his campaign are striking the wrong chord with some thanks to the music that was played at the event.
One of those not singing the praises of the former president is Celine Dion. Her performance of her Academy Award-winning song “My Heart Will Go On” could be seen on the rally’s video screen Friday night, Aug. 9.
Dion’s management team said the song was not authorized and posted a message to social media the following day.
“Today, Celine Dion’s management team and her record label, Sony Music Entertainment Canada Inc., became aware of the unauthorized usage of the video, recording, musical performance, and likeness of Celine Dion singing “My Heart Will Go On” at a Donald Trump / JD Vance campaign rally in Montana,” the team said. “In no way is this use authorized, and Celine Dion does not endorse this or any similar use. …And really, THAT song?”
Around the same time, the family of the late R&B singer Isaac Hayes also took to social media after Trump used the song “Hold On, I’m Coming” to close out the same rally, as he did at last month’s Republican National Convention. The song was written by Hayes for the duo Sam & Dave.
His family released a notice of copyright infringement demanding that the Trump campaign cease playing the song and others by Hayes; remove all Trump-related videos featuring the song, issue an official statement that the family did not give permission to play the song and pay $3 million for the unauthorized use by Friday, Aug. 16.
Hayes’ family claims to have found 134 instances of copyright infringement between 2022 and 2024. Hayes’ son, Isaac Hayes III, posted a video to social media to respond to those questioning his family’s rights to the song.
“The copyright to ‘Hold On, I’m Coming’ expired March 15, 2022. It returned to our family on that date,” Hayes III said. “So we are the ones who own the copyright to ‘Hold On, I’m Coming.’ Think about that. Typically, in these situations, it goes a little differently because they are publishing companies involved and everybody wants to remain neutral. But I don’t have to act like that. I don’t have to follow those rules.”
These are just the latest artists to request Trump to stop using their work at his political rallies, joining the likes of Bruce Springsteen, Adele and the Beatles.
With all that said, some musicians are singing a different tune and backing the former president.
Last month, during a concert in Utah, rapper Waka Flocka Flame told Biden supporters in attendance to leave and gave a shoutout to Trump. Singer Kid Rock performed at the Republican National Convention getting attendees to chant along “fight!” shortly before Trump’s address.
The Trump campaign has not issued a response to the requests by Celine Dion’s management or Isaac Hayes’ family.
Trump is scheduled to hold another campaign event on Wednesday, Aug. 14, in North Carolina. While many will be listening to what the former president has to say, some well-known names will be listening to the music and hoping it’s not theirs.
The good and bad of AI voice generation in sports, entertainment, elections
People can expect legendary performances at the 2024 Olympics — and not just from the athletes. Play-by-play announcer Al Michaels, who has helped voice nearly a dozen Super Bowls, is contributing a clone of his voice to assist with NBC’s coverage.
NBC is the latest entity to introduce audience to AI voice technology, and many are skeptical about it. Michaels himself said the proposal was “a little bit frightening,” but changed his tune when he heard his copy “speak.”
The network said there will be a team of human editors who will review any AI content before it is released.
But what happens when it’s a musician getting copied without their permission? Artificial intelligence has been used to bring back the vocals of dead artists.
Singer Sheryl Crow recently spoke out about this practice, criticizing Drake for using AI to recreate the voices of Kendrick Lamar and late rapper Tupac in his song “Taylor Made” released in April. The diss track was ultimately pulled after Tupac’s estate threatened to sue.
The debate continues elsewhere in the entertainment industry. Major record companies are now suing music generation companies, accusing them of using copyrighted sounds and songs to train their AI services.
The controversy over AI has also spread into politics, where experts warn that voice generation could have a major impact on the 2024 presidential election. In January, many voters in New Hampshire received a robocall featuring the fake voice of Joe Biden telling them not to vote in the state’s primary.
There are tools people can use to help make sense of the different voices, however, much like the technology, they are still evolving.
The best bet may be to just listen closely. Audio recordings created by a live person tend to sound more natural and varied, compared to AI-generated voices that are more likely to be very clear.
Universal, TikTok strike new deal to end feud that kept Taylor Swift off the platform
Artists from Universal Music Group (UMG), including Taylor Swift, Drake, Adele, Bad Bunny and Billie Eilish, are set to return to TikTok following a new licensing agreement that resolves a three-month dispute. Announced Wednesday, May 1, the deal addresses past concerns over artist compensation, the use of AI and user safety on TikTok.
Universal Music Group and TikTok have reached a new licensing agreement, ending their months-long dispute and bringing the label’s catalog back to the short-form video platform.
This agreement specifically tackles issues with generative AI by ensuring future AI developments within the music industry will protect artists’ and songwriters’ creative rights and financial earnings.
TikTok CEO Shou Chew emphasized the platform’s commitment to drive value and promote UMG’s talent, including removing unauthorized AI-generated content and enhancing attribution for artists and songwriters. The deal also aims to create a safer online community by preventing fake merchandise and ticket sales scams.
Additionally, the agreement introduces new monetization avenues and global promotional campaigns for UMG artists, aiming to leverage TikTok’s vast user base for greater artist visibility and engagement.
Our core mission is simple: to help our artists & songwriters attain their greatest creative and commercial potential, which is why we must call time out on TikTok.
However, the future of TikTok in the U.S. remains uncertain. Recent legislation requires TikTok’s parent company, ByteDance, to sell to a U.S. owner within a year or shut down, posing potential challenges to such agreements.
TikTok maintains it has not and will never share U.S. user data with the Chinese government.
Tennessee’s new ELVIS Act protects musicians from AI impersonations
Tennessee Gov. Bill Lee, R, signed a groundbreaking law Thursday, March 21, designed to shield artists from unauthorized artificial intelligence impersonations. The Ensuring Likeness Voice and Image Security, or the ELVIS Act, addresses growing concern among artists about deepfake technology and AI impersonations that mimic their own voices.
This law recognizes an artist’s voice as a protected personal right and sets stricter guidelines on the use of someone’s name, image and appearance.
Tennessee Governor’s Office
“The really great thing about this is Tennessee is the first in the nation to enact this legislation,” Lee said at the signing. “This will be a blueprint and we expect that it will be enacted multiple times over multiple states and, at some point, artists all across America will be protected because of what started here in the music capital of the world. We will ensure that no one can steal the voices of Tennessee artists and I believe that what we’re doing here today will ensure that no one will steal the voices of American artists once this is enacted across the country.”
The law has support from the music community. Lee, alongside stars Luke Bryan and Chris Janson, signed the act at a local music venue called “honky-tonk,” calling it “the coolest bill signing ever.”
AP Images
“What an amazing, stance or, precedent to set for the state of Tennessee to get in front of this to be the leaders of this and to show artists like myself, current artists, artists that are moving here, following their dreams, to know that our state protects us and what we’re about and what we work so hard for,” Bryan said.
“From Beale Street to Broadway, to Bristol and beyond, Tennessee is known for our rich artistic heritage that tells the story of our great state,” Lee added. “As the technology landscape evolves with artificial intelligence, I thank the General Assembly for its partnership in creating legal protection for our best-in-class artists and songwriters.”
The bill also received backing from the music industry and the Human Artistry Campaign, a worldwide effort by entertainment groups advocating for a thoughtful use of AI.
“This incredible result once again shows that when the music community stands together, there’s nothing we can’t do,” Mitch Glazier, Recording Industry of America (RIAA) chairman and CEO said. “We applaud Tennessee’s swift and thoughtful bipartisan leadership against unconsented AI deepfakes and voice clones and look forward to additional states and the U.S. Congress moving quickly to protect the unique humanity and individuality of all Americans.”
The ELVIS Act updates the Personal Rights Protection Act of 1984, which was first enacted to protect Elvis Presley’s publicity rights posthumously.
Music label threatens to pull songs off TikTok over compensation debate
Some popular TikTok songs may be pulled from the app soon, including Taylor Swift, Harry Styles, Billie Eilish and more. Universal Music Group — one of the largest music labels representing major pop stars — is threatening to pull its artists’ music because of a clash with TikTok about compensation.
“Ultimately TikTok is trying to build a music-based business, without paying fair value for the music,” UMG said in a public letter to its artists. “TikTok attempted to bully us into accepting a deal worth less than the previous deal, far less than fair market value and not reflective of their exponential growth. ”
“It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters,” TikTok said in a statement on X. “The fact is, they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent.”
While the two giants in their respective industries are at odds, they are also mutually beneficial.
The majority of videos posted on TikTok have music to them. Eight out of the top 10 most popular artists heard on TikTok are represented by UMG.
From viral dance videos to the beat of a Taylor Swift song, to lip syncs of Drake’s raps and more, the artists get millions of listens. This means the musicians’ songs are getting boosts in the Billboard Top 10 and a bump in revenue, which may not have happened otherwise.
For example, Fleetwood Mac’s “Dreams” went viral from a video garnering over 90 million views. The song, which is from the 70s, likely would never have been in the Top 100 in 2020. However, TikTok’s boost gave it new life, generating more listens and more money.
YouTube to allow removal requests for AI-generated music mimicking artists
YouTube has revealed new plans to manage the risks that come with AI-generated content. As part of YouTube’s “approach to responsible AI innovation,” the platform will give music labels and distributors the ability to request the removal of synthetic content that mimics an artist’s unique singing or rapping voice.
A key criterion for evaluating removal requests will be the content’s purpose, with a focus on whether it contributes to news reporting, analysis, or critique.
In the coming months, YouTube will implement several changes. Content creators will be obligated to disclose when they are uploading synthetic or altered content that closely resembles reality. This disclosure aims to provide transparency to users about the nature of the content they are consuming. YouTube will introduce labeling for AI-generated content to varying extents. Synthetic content that breaches the platform’s Community Guidelines will be subject to removal.
YouTube’s initiative aligns with a broader trend among major tech companies addressing concerns surrounding AI-generated content. Meta recently announced guidelines prohibiting advertisers from utilizing its AI product for creating advertisements related to politics, social issues, and more. Meta is also mandating disclosure for ads generated using third-party AI tools.
Eminem vs. Vivek: Cease-and-desist letter adds to history of musician-politician battles
The chorus from Eminem’s Oscar-winning song “Lose Yourself” sounds like this – Lose yourself in the music, the moment, you own it. The “you own it” line is quite topical this week. See, the thing is – if you’re a politician using a musician’s work at a campaign event, and if you don’t own it, that could cause confusion and possible legal ramifications.
The battle between musical artists and political leaders has been going on for decades. It’s a clash between lyricist and lawmaker — performer and pundit — rapper and representative — which brings regulations on copyright, trademark and image use to the forefront. Republican presidential candidate and political newcomer Vivek Ramaswamy is the latest to join the list of politicians to get a less-than-cordial response from the artist behind the music featured at their campaign events.
Ramaswamy is no stranger to singing himself — actually, rapping.
During his college years at Harvard University, he rapped under the stage name “Da Vek.” But, as he told The New York Times, he identifies with one rapper in particular — Eminem.
“I did not grow up in the circumstances he did,” Ramaswamy told the Times. “But the idea of being an underdog, people having low expectations of you, that part speaks to me.”
That was evident during an appearance at the Iowa State Fair on Aug. 12 when Ramaswamy took the microphone and began singing the lyrics Marshall Mathers made famous in the 2002 film “8 Mile.”
Iowa Gov. Kim Reynolds had asked him moments earlier what his favorite walkout song would be. Ramaswamy replied, “Lose Yourself.” After their chat ended, the song was played over the loudspeakers and the business mogul proceeded to put on an impromptu karaoke performance.
This was not a shock to anyone who knew of Ramaswamy’s history with the song. As Politico reports, during his time at Harvard, he would rap at open-mic nights, sometimes changing the lyrics to libertarian themes. He performed the rap during a vacation in Canada and at a holiday party for Strive, the asset management firm he founded.
“In Eminem, he found an insurgent-like figure, the kind of persona Ramaswamy aspired to and still seems to draw at least some inspiration from,” Politico reported.
The presidential hopeful even rapped a few lines of the song during his interview.
Source: AP Images
But it was the state fair performance that caught the attention of Eminem himself, and the 15-time Grammy Award winner was not amused. He sent Ramaswamy a cease-and-desist letter through the performing rights organization BMI.
The letter, which was first obtained by the Daily Mail, was dated Aug. 23, 11 days after the performance. It read, in part, that BMI “has received a communication from Marshall B. Mathers, III, professionally known as Eminem, objecting to the Vivek Ramaswamy campaign’s use of Eminem’s musical compositions…BMI will consider any performance of the Eminem Works by the Vivek 2024 campaign from this date forward to be a material breach of the Agreement for which BMI reserves all rights and remedies with respect thereto.”
Source: Daily Mall
“Will The REAL Slim Shady Please Stand Up? He didn’t just say what I think he did, did he,” Ramaswamy posted on X, referring to lyrics in Eminem’s 2000 song “The Real Slim Shady.”
A spokesperson for Ramaswamy’s campaign issued a statement saying, “To the American people’s chagrin, we will have to leave the rapping to the real Slim Shady.”
History of Politician vs. Musician Battles
Ramaswamy does not have to look too far to find other politicians who have suffered a similar fate when choosing a catchy tune for their events – though, most of the time, they were not performing it as he did.
In 1984, Ronald Reagan had planned to use Bruce Springsteen’s “Born in the U.S.A.” as the theme for his reelection campaign. When an adviser for the president asked if they could use the song, the New Jersey singer said no.
That didn’t stop Reagan from referencing the rocker during a stump speech in the Garden State, saying “America’s future rests in the message of hope in the songs of a man so many young Americans admire — New Jersey’s own, Bruce Springsteen.”
In 1989, Bobby McFerrin asked George H.W. Bush’s team to stop playing his song “Don’t Worry, Be Happy” as the vice president vied for the highest office. The Bush campaign stopped using it and switched to Woody Guthrie’s “This Land is Your Land.”
Former President Donald Trump has received backlash from a few musicians whose work was used at his political events. In 2015, as Trump announced his run for the presidency, Neil Young’s “Rockin’ in the Free World” blared through Trump Tower.
Young’s representatives released a statement saying Trump was “not authorized” to use his song.
The future president’s team said that he did have permission through a licensing agreement with the performance rights organization ASCAP. Trump, however, stopped using the song, as his campaign manager at the time said they would respect Young’s wishes because “it’s the right thing to do.”
In 2020, The Rolling Stones enlisted BMI to keep its track “You Can’t Always Get What You Want” from playing at Trump rallies as he sought reelection.
“BMI (has) notified the Trump campaign on behalf of the Stones that the unauthorized use of their songs will constitute a breach of its licensing agreement. If Donald Trump disregards the exclusion and persists, then he would face a lawsuit for breaking the embargo and playing music that has not been licensed,” a statement from The Stones’ representatives said.
In 2008, Sam Moore of the R&B duo Sam & Dave requested Obama to stop playing “Hold On, I’m Coming” at his rallies, saying that it may look like he was endorsing the presidential candidate at the time.
“I have not agreed to endorse you for the highest office in our land…My vote is a very private matter between myself and the ballot box,” Moore said.
The Obama campaign agreed to stop using the song, but the following year Moore performed at the president’s inaugural ball.
Legalities of politicians using artist’s music
There are rules and regulations when it comes to a musician’s work being played at events, it’s just that these rules and regulations can sometimes be misinterpreted, misunderstood, ignored or applied differently depending on the circumstances.
Inductee Eminem performs on stage during the 37th Annual Rock & Roll Hall Of Fame Induction Ceremony at Microsoft Theater on November 05, 2022 in Los Angeles, California. Photo by Jeff Kravitz/FilmMagic). Source: Getty Images.
Leslie A. Farber is a New Jersey attorney whose areas of practice include business matters. Though she was not affiliated with any of these particular instances, she has written on the subject of whether politicians have the legal right to play any songs at their events. Her conclusion: “The answer is not clear cut.”
“Artists rarely have full control over where and when their music can be played. The writer (or writers) of a song automatically receives copyright for their original creation, and U.S. copyright statutes prohibit the dissemination of copyrighted work online without permission,” she wrote.
Copyright comes into play, for example, if a politician uses an artist’s song without permission in a social media video.
Farber said no permission is needed for a song to be played at a public venue like a stadium that has a public performance license, which is granted through organizations like BMI and ASCAP.
However, she pointed out, “ASCAP recommends that political campaigns seek permission from the musicians or songwriters, as these licenses exclude music played during conventions or campaign events.”
Jodie Thomas, BMI’s executive director of corporate communications, told Variety in 2020 that the Political Entities License was created to cover music used by political campaigns.
“Since many political events and rallies are often held at places that don’t typically require a music license, such as airport hangars or community fields, a Political Entities License ensures that wherever the campaign stops, it is in compliance with copyright law,” Thomas said. “A venue license was never intended to cover political campaigns. So if a campaign attempts to rely on a venue license to cover its music use, there’s risk involved.”
Thomas said political campaigns “cannot and should not try to circumvent BMI’s withdrawal of musical works under its Political Entities License by attempting to rely on another license.”
Farber said “savvy campaign managers” purchase the rights to play the music at political events through licensing agreements.
“If an artist’s song is part of the licensing agreement and is played at a campaign event, they have traditionally had little legal recourse outside of sending a cease-and-desist letter,” Farber said.
This is approach is seen in Eminem’s cease-and-desist letter to the Ramaswamy campaign.
BMI says the letter served as notice that Eminem’s songs are excluded from the Music License for Political Entities or Organizations between its organization and the Vivek 2024 team effective immediately. According to the letter, the licensing agreement between the two parties was entered on May 24, almost three months before the “Lose Yourself” viral moment.
According to Farber, other avenues artists can take to keep politicians’ hands off their songs are objecting on the basis of their Right of Publicity, “a legal argument that covers how their image is portrayed,” and the Lanham Act, which covers trademark infringement.
Farber said infringement can occur if the use of the song could confuse the audience into thinking the musician is endorsing the candidate, which is an argument many artists have used to stop their music from being played.
In July 2020, Gospel singer and songwriter Yolanda Adams testified before the Senate’s subcommittee on intellectual property about musicians’ work being used by political campaigns.
The four-time Grammy winner said, “I am not a copyright attorney. But after decades of watching debates about music in campaigns, I can offer a songwriter’s advice in lieu of legal advice. Musicians run the spectrum of political views. If candidates want to use music in their campaigns, work with us – the artists and songwriters – to find the right match. I am often asked for the use of my music for all kinds of uses: services, weddings, alas, even funerals. And I almost always give my permission.
“But the operative word is permission. Legal battles and cease and desist letters will never be as effective as good old-fashioned cooperation.”