Copyright Office Solicits Comment on Music Streaming Fraud

Today, the U.S. Copyright Office published a notice of inquiry (NOI) in the Federal Register soliciting public comment on issues related to music piracy threatening billions in U.S. domestic revenues generated by digital streaming. The Office’s NOI responds to a request into the prevalence of streaming fraud across the music industry issued by U.S. Representative Scott Fitzgerald (R-WI), who also voiced concerns about generative artificial intelligence’s (AI) impact on the music industry.

Bot Farms, Playlist Stuffing Among Techniques Used by Bad Actors to Inflate Streams

Digital streaming accounts for about 70% of global music sales according to the Digital Media Association (DIMA) Annual Report 2025. Global revenues reported in 2026 by the Recording Industry Association of America (RIAA) and International Federation of the Phonographic Industry (IFPI), sound recording copyright owners made $22 billion in global revenues while musical work copyright owners earned $10 billion in global revenues. Domestically, U.S. record labels made $9.5 billion while U.S. music publishers earned $7.3 billion in revenues last year.

Music piracy undercuts the economic benefits that stem from authorized, licensed digital streams, reducing the royalties collected by collective management organizations (CMOs) and performance rights organizations (PROs) and then paid out to rightsholders. The Copyright Office’s NOI highlights several techniques employed by bad actors deceptively inflating playback numbers to divert royalties from legitimately streamed works such as bot farms, click farms, playlist stuffing, account hijacking or copyright fraud, which includes fraudulent claiming of the original or manipulated tracks of others through practices known as “carbon copying” or “ghost tracking.”

The Copyright Office’s NOI acknowledges several harms stemming from music piracy including damage to business relationships caused by inaccurate payouts and distorting data-driven decisions on live touring performances. The Office’s NOI also notes law enforcement efforts to combat piracy including yesterday’s announcement by Southern District of New York District Attorney Jamie McDonald of an 18-month jail sentence issued to a North Carolina man who pled guilty to conspiracy to commit wire fraud for employing an automated bot scheme to inflate royalty payments for music recordings he purportedly owned (United States v. Michael Smith). The sentence was applauded by groups including the RIAA, which issued the following statement: “Streaming fraud harms creators and deceives fans. We appreciate the Court recognizing the significance of this harmful conduct and the ill-gotten gains that come from the pockets of real artists, songwriters and their label partners.”

To aid Congress’ understanding of the relevant issues, the Copyright Office asks a series of questions in its NOI soliciting information from the public on various issues related to music piracy and streaming fraud, including:

1. How is streaming fraud executed? What data is available about the prevalence of specific schemes ( e.g., bot farms, click farms, playlist manipulation, and fraudulent marketing companies)?…
4. What data is available on the relationship of streaming fraud to “the effects of AI-generated [music]” and “the licensing and distribution . . . royalties” for the performance and reproduction of musical works and sound recordings?…
5. What data is available on the relationship of streaming fraud to various aspects of live music performances, including venue selection, ticket sales, or “secondary sales ( e.g., food and beverage, merchandise, parking, etc.)?”…
8. What are some potential voluntary, statutory, or regulatory solutions to streaming fraud?…
9. How can streaming fraud be better addressed through criminal enforcement?…

The Copyright Office’s music piracy NOI was prompted in large part by a letter sent by Rep. Fitzgerald this May to Register of Copyrights Shira Perlmutter. Citing examples like the Southern New York district court case, in which Smith fraudulently obtained some $10 million in streaming royalties, Rep. Fitzgerald requested the Office examine the prevalence of streaming fraud across digital platforms and how it may be impacting the music industry as a whole.

Strong Ties Between AI-Generated Streams and Criminal Activity Omitted From NOI

Interestingly, the Copyright Office’s NOI reiterates few of the concerns regarding generative AI that made up the bulk of Rep. Fitzgerald’s May letter to the agency. Acknowledging there was nothing inherently wrong with the use of generative AI as a music creation tool, Fitzgerald nonetheless highlighted the additional competition posed to music artists from such artificially created music, citing a report from streaming platform Deezer indicating that 44% of daily music uploads to that platform were AI-generated. Such AI-generated music streams are often linked to criminal activity, such as the AI-generated music and automated bots used by Smith in the New York case.

Written comments to the NOI must be submitted at regulations.gov and received no later than 11:59 p.m. Eastern Time on November 23, 2026.

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