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Increased penalties
for streaming fraud
A 54-year-old man from East Jutland was sentenced to two years in prison for extensive streaming fraud in the Western High Court on Wednesday. The court also confiscates DKK 3.5 million and fines his company DKK 300,000.
The fraud case is one of the world's largest in music streaming and the first verdict was handed down in 2024. In an appeal case, the High Court has just increased the sentence for a 54-year-old man who wrongfully received at least DKK 3.5 million in royalties.
Fraud with playback numbers and music
The case, which was brought by the interest organisation RettighedsAlliancen on behalf of Dansk Artist Forbund, Koda, Dansk Musiker Forbund and IFP, led to a verdict in the District Court in 2024, but the High Court has now tightened the sentence, which was handed down on Wednesday.
Through his sole proprietorship, the convicted person systematically manipulated playback figures on streaming services for music registered by himself. Several of the works were edited versions of other people's music, which he stole and released under his own name. The court confiscates DKK 1.5 million from the man himself and a further DKK 2 million from the company.
"Streaming fraud has major negative consequences for artists and music creators, and it's good that the court has again imposed penalties and established that it is illegal. This case again shows how important it is that the money flows and business model behind streaming become easier to understand," says Sara Indrio, Chairperson of the Danish Artist Association.
The court did not consider the rights holders' claim for compensation, which will instead be settled in a civil action. This worries several industry organisations, who fear that artists and rights holders will find it difficult to get the compensation they are entitled to.
The decision in this case, the largest of its kind so far, therefore sends an important signal that stream manipulation can be detected and penalised.