Local Musicians Demand Legislation Reform After AI Music Fraud Arrest Shakes Community

CORNELIUS, N.C. — Local Musicians Push for New Legislation Following AI Music Scheme Arrest

In a surprising turn of events, the town of Cornelius is buzzing with stories about a musician who found himself in a world of trouble after police arrested him for what is being described as an elaborate **AI music scheme**. Michael Smith, a 52-year-old native of the area, was taken into custody on September 4 and charged with both fraud and conspiracy. Authorities reported that he is accused of using **artificial intelligence** to generate a staggering number of songs—hundreds of thousands to be exact—that were streamed billions of times, allegedly allowing him to collect over **$10 million** in royalty payments. Yikes!

The Fallout from Fraud

The ramifications of Smith’s actions are far-reaching, sending shockwaves through the local music community and sparking a discussion about fair practices in the ever-evolving music industry. U.S. Attorney Damian Williams highlighted that the fraud perpetrated by Smith cheated many honest musicians and songwriters out of valuable royalty money from 2017 up until this year. It has left many local artists wondering how safe their earnings truly are.

What Did Michael Smith Do?

While Smith is believed to have a small catalog of music of his own, the crux of the issue revolves around the **billions of streams** attributed to songs created with AI. According to authorities, he used these streams to illicitly **steal royalties** from hardworking artists. It begs the question: is it AI itself that’s harming artists, or the deceptive practices involved in its use?

Musicians React

In light of the incident, local musicians are coming together, calling for stronger legislation to regulate the use of AI in creating music. Glenn Tabor, owner of Gat3 music production studio in nearby Charlotte, expressed concerns over how such fraudulent schemes impact the entire music ecosystem. “These companies take the massive income from all of the subscriptions and ad revenue, and then that’s distributed amongst artists in plays and their percentages,” he explained. “When you have AI thrown into that mix, you’re really stealing valid money from the artists that need it.”

Legislative Hurdles

The push for better legislation has unfortunately been stagnant, both federally and at the state level. Tabor believes that the solution begins with lawmakers. “A lot of our music laws are very antiquated from decades ago, and it’s going to take a little time for that to catch up,” he remarked. Indeed, the need for updated legislation has become even more urgent as the tech continues to evolve.

The Role of AI in Music

Despite the controversy surrounding Smith’s actions, many in the industry acknowledge that **AI can bring benefits** to musicians. Hamed Tabkhi, an associate professor at UNC Charlotte and a part-time musician, shared his thoughts. “It’s a cat-and-mouse game, right? As you come with the new regulations, new policies, at the same time, AIs are getting better and bigger,” he noted. Both Tabor and Tabkhi agree that AI is not inherently a bad tool. In fact, they both leverage AI technologies in their work. “We can take tools to clean up bad audio and harsh environments,” Tabor explained, emphasizing the positive aspects of artificial intelligence in music production.

Possible Penalties

As the legal proceedings move forward, it’s reported that Smith could face severe consequences if convicted, with potential penalties reaching **up to 60 years in prison**. This has opened a broader dialogue about the need for accountability in the rapidly advancing world of AI and its applications in creative industries.

While Cornelius may currently be grappling with the implications of Smith’s alleged fraudulent activity, the discussions around **fair compensation** for artists and the regulatory landscape of AI technology are likely to continue. Musicians are banding together, advocating for a future where their craft is safeguarded from deceit, ensuring they receive their fair share of the spotlight—and the royalties!