Spotify Distribution Loophole Facilitates AI Royalty Theft
AI-generated image · US National Wire
Bad actors are exploiting gaps in digital distribution to siphon payments from real artists using generative AI.
A systemic distribution loophole is allowing scammers to upload AI-generated songs directly into the catalogs of existing artists on Spotify and other streaming platforms, as Engadget first reported via 404 Media.
As detailed by Engadget, the scheme involves using generative AI tools such as Suno or Udio to create music and AI to generate album art. Scammers then use digital music distribution services—including DistroKid, which 404 Media used in a test involving the band Lathe of Heaven—to upload the tracks. By falsely claiming to be the artist, scammers can insert songs into pre-existing profiles on Spotify, Apple Music, Amazon Music, and Tidal.
Because these fake tracks co-opt established artist names and profiles, they can generate higher payouts than typical AI-generated content. These royalties go to the scammers rather than the original artists. The musical group Odette Child reported tracking over 300 AI-generated songs targeting major acts like Taylor Swift, celebrities, and deceased jazz musicians. Odette Child further claimed that platforms are not interested in the best possible solution to the problem.
Spotify confirmed to 404 Media that unmanaged profiles are particularly vulnerable. While Spotify has introduced a verification badge and a spam filter to target "slop" and mass uploads, the company's primary solution—a tool allowing musicians to review releases before they go live—has remained in limited beta since March.
Spotify stated it is investing in detection and working with distributors to stop bad submissions at the source. Amazon Music stated it is using advanced detection technologies and monitoring systems to protect songwriters and artists.