The US Copyright Office Has Opened A Public Inquiry Into Music Streaming Fraud

Today (October 7), the US Copyright Office (USCO) has officially launched a notice of inquiry (NOI) into streaming fraud. This is an opportunity for anyone to share information with the US government about streaming fraud and how it affects the music industry. Submit comments via copyright.gov.

The details:

• The inquiry explains the potential negative effects of streaming fraud, how it can function, and efforts to curb it.

• Initial comments can be submitted until November 23, 2026, at 11:59 pm ET. Replies to comments are due by December 21, 2026, at 11:59 pm ET.

Background:

• US Representative Scott Fitzgerald sent a letter to USCO in May requesting an inquiry into streaming fraud.

• Michael Smith, whose recent high-profile streaming fraud case led to over $10 million in illicit royalties, was sentenced to 18 months in prison this week.

• He used bot accounts to stream thousands of AI-generated songs and received all the royalties.

What they said:

• USCO: “This NOI requests public input on the prevalence of streaming fraud across streaming platforms and how it may be affecting the music industry. It 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.”

• Fitzgerald: “When AI-generated outputs compete against human-made works, they divert money from a finite royalty pool that would otherwise be distributed to actual rights holders. If done fraudulently by bad actors deploying bots or other forms of manipulation, it represents a clear theft of the royalty pool.”