According to the indictment, external, Mr Smith was at points operating as many as 10,000 active bot accounts to stream his AI-generated tracks.
It is alleged that the tracks in question were provided to Mr Smith through a partnership with the chief executive of an unnamed AI music company, who he turned to in or around 2018.
The co-conspirator is said to have supplied him with thousands of tracks a month in exchange for track metadata, such as song and artist names, as well as a monthly cut of streaming revenue.
“Keep in mind what we’re doing musically here… this is not ‘music,’ it’s ‘instant music’ ;),” the executive wrote to Mr Smith in a March 2019 email, and disclosed in the indictment.
Citing further emails obtained from Mr Smith and fellow participants in the scheme, the indictment also states the technology used to create the tracks improved over time – making the scheme harder for platforms to detect.
In an email from February, Mr Smith claimed his “existing music has generated at this point over 4 billion streams and $12 million in royalties since 2019.”
Mr Smith faces decades in prison if found guilty of the charges.
Earlier this year a man in Denmark was reportedly handed an 18-month sentence after being found guilty of fraudulently profiting from music streaming royalties, external.
Music streaming platforms such as Spotify, Apple Music and YouTube generally forbid users from artificially inflating their number of streams to gain royalties and have taken steps to clamp down on or advised users on how to avoid the practice.
Under changes to its royalties policies, external that took effect in April, Spotify said it would charge labels and distributors per track if it detected artificial streams of their material.
It also increased the number of streams a track needs in a 12 month period before royalties can be paid, and extended the minimum track length for noise recordings like white noise tracks.
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