Sony, Universal and Warner back a new pact against streaming fraud

The recording industry’s global trade body has launched a new commitment asking music distributors to stop fraudulent tracks before they reach streaming services. IFPI announced the Streaming Integrity Initiative in London on 14 September.

Twenty-seven companies and industry groups back it at launch. They include Sony Music Group, Universal Music Group and Warner Music Group. Distributors such as CD Baby, Ditto Music, FUGA, The Orchard and AWAL have also signed.

How the fraud works

Streaming services pay artists and songwriters from royalty pools. IFPI says fraudsters upload tracks built for fraud, sometimes through distributors, then use “armies of bots” to play them. The fake plays take money from those pools and reduce what legitimate artists and songwriters earn.

“Streaming fraud misleads fans and deprives legitimate artists and songwriters of income that should rightfully flow to them. This is theft, plain and simple,” said Victoria Oakley, IFPI’s chief executive.

IFPI says prevention matters more as AI tools become more widely available. The initiative asks distributors to screen for AI-generated content and for misuse of artists’ voices, names, images and likenesses.

Five commitments for distributors

IFPI calls distributors a key entry point to streaming services, which is why the initiative focuses on them. Signatories commit to five practices, set out on the campaign’s End Streaming Fraud site.

First, they verify rights ownership and check customers’ identities before distributing music. Second, they vet uploads for infringement, fraud and AI-related risks, using tools such as audio recognition and metadata checks.

Third, they detect and investigate suspected fraud. Repeat offenders should be banned across all platforms. An immediate ban is also allowed where appropriate. Fourth, they share high-confidence fraud indicators with other companies, where data protection law permits, so that offenders cannot simply move to another service. Fifth, they regularly measure and update their anti-fraud systems.

Who else needs to act

IFPI says distributors are only one part of the fix. It also wants streaming platforms to detect fraud at the source, and lawmakers to make laws against streaming fraud “clear, strong and effective”. It is inviting more distributors, streaming services and industry bodies to join.

Several signatories said the commitments match what they already do. Merlin, which represents independent labels in digital licensing, said they “align closely with what Merlin already requires of its members”. Noemí Planas, chief executive of the independent music network WIN, said the same of many distributors in its network.

DistroKid and TuneCore are not on the list of signatories published by IFPI.

A growing crackdown

The music industry has been fighting on several fronts over AI, from licensing deals to streaming fraud. Streaming services have also moved on their own. TIDAL said in June it would strip royalties from AI-generated music, and Deezer released a free tool that flags AI tracks in playlists.

AI music companies are also changing course under legal pressure. Suno has said it will watermark the tracks it generates, and it has since launched models trained on licensed catalogues from Warner and BMG.