Audicient - White Label Music Distribution Platform

Anti-Fraud Policy

Effective Date: 30th December 2024

Audicient LLC ("we," "our," or "us") is committed to protecting digital rights and ensuring that the activity conducted through our white-label music distribution platform complies with applicable laws, DSP requirements, and our Terms of Service. This Anti-Fraud Policy explains how we monitor for fraudulent or infringing behavior, the steps we take when issues arise, and the consequences of continued violations.

Audicient Warning System

Audicient operates a strict two-strike policy. We may issue one formal warning (first strike). If a second strike is issued, the client's account will be terminated. In cases of egregious violations that cause immediate harm to our business, DSP relationships, or rightsholders, we reserve the right to disable access without prior warning.

Warnings are intended to place the potentially fraudulent or infringing sub-account under closer scrutiny and to give clients a clear opportunity to correct the issue. Clients are expected to investigate warnings promptly and take appropriate action to prevent repeated violations.

Violations That May Trigger Warnings

Audicient will notify a client within three business days of discovering or receiving a valid report of a violation. Violations include, but are not limited to:

  • Intellectual property or trademark infringement.
  • Artificial streaming or other attempts to manipulate consumption metrics.
  • Breaches of DSP terms of use or platform policies.
  • Violations of YouTube's monetization rules or similar partner policies.

First Warning

A first warning will be issued when repeated violations occur within a 60-day window, such as:

  • For parent-child account structures: when the same sub-account is responsible for an additional violation within 60 days of the initial report.
  • For standalone accounts: when the same type of violation happens again within 60 days of the initial report.

Final Warning (Second Strike)

A final warning (second strike) will be issued when any of the following occur. Upon issuance of the second strike, the account will be terminated.

  • For parent-child accounts: failure to address an end user's violation within the requested timeframe on repeated occasions.
  • For parent-child accounts: a growing number of infringing or fraudulent sub-accounts within a 60-day period.
  • For standalone accounts: recurring instances of the same violation after the first warning.

Consequences of Fraudulent Activity

If we determine that a client or their end user has breached our Terms of Service, we may take one or more of the following actions:

  • Remove or disable access to infringing content.
  • Withhold royalties and place them in escrow.
  • Disable distribution to specific DSPs for the client or affected end users.
  • Terminate individual end user accounts.
  • Terminate the client's account.

When fraudulent or infringing activity is attributable to the client or their end users, we may terminate the agreement and close the account at any time. Costs incurred by Audicient or our partners (including legal fees and expenses) may be deducted from future payments owed to the client. Additional legal action may be taken if damages exceed withheld amounts.

Unblocking an Account

Clients will receive a ticket or email notification if we detect potential infringing or unauthorized activity. The relevant account may be blocked while we request further information. If the client provides the requested information within five business days and we can verify the details, the account may be unblocked.

We may request that the client:

  • Correct and confirm all account information.
  • Provide a government-issued photo ID.
  • Supply artist or label profile links (e.g., official website, social channels) and supporting metadata that aligns with reported sales data.

Blocked Account Policy

If a client cannot or refuses to provide the requested information within five business days, we may keep the account blocked and withhold revenues associated with content suspected of violating our Terms of Service or DSP agreements. Clients with blocked accounts will lose access to the platform and all services, and their content may be removed. Royalties will remain in escrow for up to 24 months, aligning with DSP chargeback windows.

Royalties Held in Escrow

We may withhold royalties in any client account tied to content suspected of violating our policies or DSP agreements. Funds are retained in escrow for up to 24 months or until a claim is resolved. Escrowed royalties enable us to:

  • Release payments if an end user demonstrates that their account activity was legitimate.
  • Respond to DSP requests for refunds where royalties were generated through fraudulent or unauthorized activity.
  • Disburse royalties to legitimate rights holders who substantiate ownership claims.
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