In a historic appeal case, the Western High Court has increased the sentence for a massive fraud involving playbacks of music on streaming services. The ruling may become significant in future efforts to combat fraud in the music industry.
Press Release
In the appeal case concerning the manipulation of music streaming, the Western High Court has increased the district court’s sentence, as there is evidence of extensive fraud amounting to no less than 3.5 million kroner. The 54-year-old man from Eastern Jutland was sentenced to two years in prison, of which three months must be served, for aggravated data fraud and copyright infringement. Additionally, the Western High Court has confiscated 1.5 million DKK from the convicted and 2 million DKK from his company. The company has also been fined 300,000 DKK. The convicted individual must also pay half of the legal costs for the High Court, while the state covers the other half as compensation for the lengthy legal process.
The data fraud involved manipulating playback numbers of many musical works registered under his own name on various music streaming services. Through this scheme, he unlawfully received royalties amounting to no less than 3.5 million DKK that should have gone to legitimate musicians.
Several of these works were edited versions of music he had copied from genuine Danish musicians and subsequently released under his own name.
The High Court thereby upholds the district court’s ruling from March 2024 in a case initially reported by the Rights Alliance in 2018 on behalf of its members Koda, IFPI, the Danish Musicians’ Union, and the Danish Artists’ Union.
The court chose not to address the compensation claims of the rights holders, which were instead separated into a civil lawsuit.
Maria Fredenslund, CEO of the Rights Alliance, states:
“It is important that the High Court has increased the sentence, thereby confirming that manipulating music streaming is illegal. This has significant implications for all the artists and rights holders who have been deprived of royalty payments for their music. The ruling also sends a crucial signal that such actions will be punished. At the same time, we find it deeply regrettable that the compensation claims of rights holders are not included in the case. This results in unnecessary resource consumption for rights holders, the convicted individual, and the judicial system. Given that this case has already dragged on since our initial report in 2018, it is unfortunate that it must now continue in civil court. If even a high-profile case like this – where massive fraud has impacted the entire Danish music industry – does not lead to compensation, we fear that in practice, obtaining restitution is not a real possibility for rights holders.”
Gorm Arildsen, CEO of Koda, states:
“That the ruling has been upheld by the High Court is very positive. We see this ruling as an important step in the fight against fraud and the manipulation of streaming in the music industry. It is both immoral and profoundly unfair to manipulate payments that rightfully belong to dedicated and hardworking music creators. With this ruling, a decisive and clear signal is sent regarding zero tolerance for streaming fraud, and we expect it will deter others from attempting similar scams.”
Lasse Lindholm, Director of Communications and Public Affairs at the Music Companies’ Association IFPI, states:
“Fraudulent streaming is a cynical theft of revenues that should have gone to legitimate artists and songwriters. Therefore, we are satisfied that the High Court, by upholding the ruling, is drawing a clear line. We see the ruling as crucial support for those who dedicate their lives to creating music for all of us to enjoy.”
Sara Indrio, Chair of the Danish Artists’ Union, states:
“Streaming fraud has significant negative consequences for artists and music creators, and it is good that the court has once again imposed a sentence and confirmed its illegality. This case further highlights the importance of making the financial flows and business model behind streaming more transparent.”
Thomas Sandberg, Chair of the Danish Musicians’ Union, states:
“The High Court’s ruling confirms that manipulating music streaming is illegal—and that it must be punished. This is a victory for the artists and rights holders who have been deprived of their royalties. However, it is problematic that the compensation claims were not part of the case. When massive fraud against the entire Danish music industry does not even result in compensation, it sends a dangerous signal that rights holders may not actually be able to obtain the restitution they are entitled to.”
More Fraud Expected in the Future
Stream manipulation has severe consequences for the music industry, as it undermines the economic ecosystem when rights revenue is unjustly taken from artists, songwriters, producers, and other legitimate rights holders. Although this case is the first of its kind in Denmark and among the largest confirmed streaming fraud cases globally, evidence suggests that streaming manipulation is a growing challenge that may escalate with technological advancements.
The Danish case did not, as far as we know, involve AI-generated music. However, in September 2024, a musician from North Carolina was indicted for streaming fraud involving artificial intelligence. According to a press release from the U.S. Attorney’s Office, Southern District of New York, the individual allegedly played hundreds of thousands of AI-generated songs billions of times using bot accounts on streaming services, resulting in unjustified royalty payments exceeding 10 million dollars.
While technological developments create new opportunities for creativity and music production, they also provide new tools that can be exploited to manipulate the streaming economy. This includes the market for purchasing streams via so-called stream farms and the inundation of the music market with fully AI-generated music. Recently, Deezer announced that 10,000 fully AI-generated tracks are uploaded to their platform daily – equivalent to 10% of the total daily uploads.
This case therefore sends an essential message that stream manipulation can be detected and punished, serving as a crucial precedent for similar cases in the future.
Press Contact:
Tina Schütz Bonnichsen
Project Manager in Communication at the Rights Alliance
Phone: +45 41 41 20 93
Email: tina.bonnichsen@rettighedsalliancen.dk
Read about the district court ruling here: Dane Sentenced to 1,5 years in prison in Historic Streaming Fraud Case