A North Carolina musician has been arrested and charged with fraud and conspiracy for allegedly using artificial intelligence to create hundreds of thousands of songs that were streamed billions of times, resulting in over $10 million in royalty payments. The 52-year-old musician from Cornelius, North Carolina, is facing potential penalties of up to 60 years in prison.
Authorities revealed that the musician, who had a small catalog of music, utilized AI to generate songs that were streamed extensively to collect royalties that should have gone to legitimate musicians and songwriters. The fraudulent activity reportedly took place between 2017 and this year.
The indictment stated that the musician created thousands of streaming accounts to continuously stream the AI-generated songs, resulting in approximately 661,000 streams per day and annual royalties of $1.2 million. These royalties were drawn from a pool set aside by streaming platforms for artists.
To avoid detection, the musician used AI to create tens of thousands of songs and collaborated with an AI music company CEO and a music promoter. In an email last February, the musician boasted of generating over four billion streams and $12 million in royalties since 2019.
Despite suspicions raised by a music distribution company in 2018, the musician denied any fraudulent activity, claiming there was no wrongdoing. The FBI emphasized its commitment to identifying and prosecuting individuals who exploit technology for illicit gains at the expense of genuine artistic talent.
