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# US Copyright Office Probes Music Streaming Fraud
- URL: https://www.hypebot.com/us-copyright-office-probes-music-streaming-fraud/
- Published: 2026-10-08T14:41:51.000Z
- Updated: 2026-10-08T14:41:51.000Z
- Description: After the $8M AI streaming fraud sentence for Michael Smith, the US Copyright Office launched an inquiry into fake streams and stolen royalties.
- Author: Bruce Houghton
- Tags: Fraud, streaming fraud, US Copyright Office, copywright, Streaming, Music Industry News, music royalties

The [**US Copyright Office**](https://www.hypebot.com/tag/us-copyright-office/) **(USCO)** has published a **Notice of Inquiry** (NOI) soliciting public comments on the growing crisis of music streaming fraud. 

The probe aims to understand how bad actors use bot farms, click farms, and artificial intelligence to siphon billions in [royalties](https://www.hypebot.com/tag/royalties/) away from legitimate, hard-working artists and rightsholders.

### **The Catalyst: The $8 Million Michael Smith Case**

The government's announcement arrived just one day after a federal judge sentenced North Carolina musician **Michael Smith** to 18 months in prison.

In the first-ever US criminal prosecution for AI-assisted music streaming fraud, prosecutors revealed that between 2017 and 2024, Smith used up to 10,000 automated bot accounts to stream hundreds of thousands of AI-generated tracks billions of times. His massive operation successfully defrauded streaming platforms out of more than **$8 million** in royalty payments.

![](https://storage.ghost.io/c/3a/95/3a957c06-c825-4057-9939-0a274cc16d23/content/images/2026/10/Mike_Smith_2019.jpg)

**Mike Smith.*

### **What the USCO Wants to Know**

To prevent cases like Smith's from draining the royalty pool, the Copyright Office is asking for industry's input. The office is specifically seeking data and evidence regarding:

- The prevalence and economic impact of specific schemes (e.g., bot farms, playlist manipulation).
- The exact relationship between streaming fraud and AI-generated music.
- How effectively digital platforms, distributors, and initiatives (like the Music Fights Fraud Alliance) are detecting and preventing artificial plays.
- Potential legislative, statutory, or regulatory solutions to claw back stolen royalties and permanently ban offenders.

**Artists, labels, and industry stakeholders have until November 23, 2026, to submit their initial written comments, with reply comments due by December 21, 2026.**

### **Hypebot's Bottom Line**

The Michael Smith sentencing and this new US Copyright Office inquiry mark a massive turning point for the music industry. 

For years, artificial streaming was largely treated as a platform Terms of Service violation - a nuisance left to distributors and DSPs to play whack-a-mole with. Now, the federal government is formally acknowledging that streaming fraud is a serious criminal enterprise that actively steals from the pockets of legitimate creators. 

If the industry unites to provide hard data to the Copyright Office during this comment period, it could finally lead to the standardized, legally enforceable anti-fraud guardrails the DIY and independent music ecosystem desperately needs.

***+Read more:*** [*"AI Music Disputes Need More Than a Label: 5 Records All Artists Should Keep"*](https://www.hypebot.com/ai-music-disputes-need-more-than-a-label-5-records-all-artists-should-keep/)

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