On Thursday, March 21st, a verdict was handed down in Denmark’s first case of streaming fraud, where a 53-year-old Danish man was sentenced to 1.5 years in prison after generating artificial streams of music worth not less than 2 million Danish kroner.
Press Release
A 53-year-old man from East Jutland was sentenced on Thursday, March 21st, to 1 year and six months in prison, of which three months were unconditional, for data fraud of a particularly serious nature and copyright infringements, after having conducted stream manipulation.
The court in Aarhus confiscates one million Danish kroner from the convicted and an equivalent amount from his sole proprietorship. The company is also fined 200,000 kroner. The convicted must also pay the legal costs, but since the case has been underway for several years, the state pays half as compensation for the long processing time.
The convicted has chosen to appeal the verdict to the High Court.
the 46th highest-earning musician in Denmark
Between 2013 and 2016, he orchestrated artificially generated streams of 689 music tracks, which he had released under his own name across various music streaming services. As a result, he unlawfully received not less than 2 million Danish kroner in royalties — funds that should have rightfully been distributed to artists, songwriters, producers and other rights holders with authentic streams on these platforms during the specified period. 37 of the tracks were also edited versions of music he had copied from other musicians.
The magnitude of the artificially generated streams was significant enough that he became the 46th highest-earning musician in Denmark for a period. His income ranked higher than Lars Lilholt’s yet lower than Anne Linnet’s, unusually, as his music was exclusively profitable from streaming without ever being promoted or broadcast on radio or television.
The decision in the case has been long-awaited, as The Danish Rights Alliance reported the case back in 2018 on behalf of its members Koda, IFPI, Danish Musicians’ Union, and Danish Artist Union.
Read NSK’s press release here (in danish).
Historic Verdict
The verdict is historic, marking the first time a case of streaming fraud has been considered by Danish courts. The case has also attracted international attention because it’s rare for stream manipulation to lead to legal sanctions. The decision sets an important precedent for similar future cases and underscores that stream manipulation is a serious criminal trend with significant consequences for both the Danish and international music industry.
Maria Fredenslund, CEO of The Danish Rights Alliance, says:
“We are pleased that the court has affirmed that streaming fraud is deeply criminal and serious. It’s a historic verdict that sends a strong signal about the severity of stream manipulation challenges. The case also shows that this type of fraud can be detected, and that both rights holders and authorities take the issue seriously. It will be an important starting point to prevent similar cases in the future, especially with the development within artificial intelligence. For this reason, it’s crucial that the Section for Rights Protection at NSK is capable of handling this type of rights crime, which they have done excellently in this case.”
Jakob Hüttel, Legal Chief at Koda, says:
“We are pleased with the verdict in the case, as we see it as an important step in the fight against fraud and stream manipulation in the music industry. It’s not just immoral, but blatantly unfair to manipulate payments that should rightfully go to dedicated and hardworking music creators. With this historic verdict, a clear signal of zero tolerance for streaming fraud is sent, and we expect the judgment to serve as a deterrent example for others who might consider committing similar fraud.”
Sofie Sarlvit, Communications Consultant at the Music Companies’ Trade Organization IFPI, says:
“Fraud with streams is a cynical theft of revenues that should have gone to real artists and songwriters. Therefore, we are satisfied that the Court in Aarhus with the current judgment is drawing a clear line in the sand. We see the judgment as important support for those who spend their lives creating music for the enjoyment of us all.”
Sara Indrio, Chairperson at Danish Artist Union, says:
“It’s very important that this serious case has now been thoroughly processed by the judicial system. Music streaming accounts for the majority of revenue in the Danish music industry, hence fraud with streaming has large negative consequences for artists and musicians. At Danish Artist Union, we work for measures that can correct economic imbalances in digital music distribution, and this case also shows how urgent it is that the business model behind streaming becomes more fair and transparent.”
Thomas Sandberg, Chairperson at Danish Musicians’ Union, says:
“The judgment clearly shows that fraud with streams is theft of the wages musicians should receive for their work. It’s a victory that we now have the court’s word for it, that musicians should not tolerate this happening. The next step is to ensure better protection for musicians against streaming fraud by creating greater transparency with streaming services.”
Contact
Maria Fredenslund, CEO of The Danish Rights Alliance, tel. 21 64 74 48, maria.fredenslund@rettighedsalliancen.dk
Also read: Case of Streaming Fraud Finally Heading to Court
Updated March 21st, 15:35