LUCY Sounds is committed to maintaining a fair and transparent platform for all users. This Anti-Fraud Policy outlines how we identify, warn, and take action against fraudulent activity on our platform.

1. Warning System

LUCY Sounds will issue up to 2 warnings before account termination, except in extreme violation cases where immediate termination may occur.

The warnings serve to place potentially fraudulent accounts under scrutiny and provide an opportunity for correction. LUCY Sounds expects clients to investigate warnings and act in a timely manner to prevent repeated infringement.

Violations are reported within 3 business days and include:

Intellectual property or trademark violations
Significant levels of artificial streaming
DSP Terms of Use violations
YouTube monetization policy violations

2. First Warning

Issued for repeating violations:

Parent-child accounts: when the same sub-account violates again within 60 days
Non parent-child accounts: when the same violation type occurs within 60 days

3. Second Warning

Issued when:

Parent-child accounts fail to act against end user violations within reasonable timeframes on repeated occasions
Parent-child accounts show increasing infringing or fraudulent end users within 60 days
Non parent-child accounts have repeated violations of the same type

4. Review for Account Termination

Upon second warning, LUCY Sounds will discuss a corrective plan with specific quotas. However, LUCY Sounds reserves the right to withdraw DSP distribution access and terminate accounts at its sole discretion, regardless of fraud case numbers.

5. Consequences of Fraudulent Activities

LUCY Sounds may:

Take down content
Withhold royalties in escrow
Disable DSP distribution
Suspend the account pending investigation
Terminate end user accounts
Terminate client accounts
Recoup any penalties, fines, chargebacks, or clawbacks a DSP, distributor, or payment processor assesses against LUCY as a result of your activity

Any costs incurred (legal fees, expenses) may be deducted from future payments. Additional legal action may follow if damages exceed withholdings.

Payment and chargeback fraud. This Policy also covers payment fraud — including the use of fraudulent or stolen payment methods, subscription chargebacks, and payment-processor disputes. In such cases we may reverse or withhold affected earnings, suspend the account pending investigation, recover the associated fees and losses, and report the activity to our payment processor and, where appropriate, to the authorities.

6. Unblocking an Account

Clients receive email notification of detected infringing activity. Accounts are blocked preventively pending client response within 5 working days.

Required steps for unblocking:

Complete client information correction
Identification document copy (passport or national ID)
Artist profiles, website URLs, social media, profile information with historical sales data support

7. Blocked Account Policy

If clients cannot or refuse to provide requested information within 5 working days, accounts are blocked with revenue withholding for content believed to violate our Terms of Service or DSP agreements.

Blocked clients lose platform access and all services. Content is removed. Royalties remain in escrow for 24 months, respecting DSP reclaim rights during this period.

8. Withholding Royalties (Escrow) for Blocked Accounts

Revenues are held in escrow for 24 months or until a claim is received. Royalties are released when:

End users prove accounts are non-fraudulent
DSPs request refunds for unauthorized or fraudulent activity
Legitimate rights holders claim retained royalties plus previously paid amounts

9. Contact Us

For questions about this policy or to report fraudulent activity, contact us at [email protected].

Enforcement Actions

The LUCY Anti-Fraud Policy covers our approach to detecting and preventing stream manipulation, artificial streaming, and other fraudulent activities. Learn about our monitoring processes, warning system, enforcement actions, and account termination procedures. LUCY is committed to protecting legitimate artists and maintaining the integrity of streaming royalty payouts across all platforms we distribute to.

Stream Manipulation Prevention

ONE Studios Ltd. operates a zero-tolerance policy toward stream manipulation, artificial streaming, and fraudulent activity on the LUCY platform. Stream fraud undermines the entire streaming ecosystem by diverting royalty payments away from legitimate artists. This Anti-Fraud Policy explains how we detect, prevent, and respond to fraudulent activity to protect the interests of honest creators distributing through LUCY.

Stream manipulation includes but is not limited to purchasing streams from third-party services, using bots or automated software to generate plays, employing click farms, streaming your own music on repeat using multiple accounts, and any other activity designed to artificially inflate streaming numbers. These activities violate the terms of all major streaming platforms and can result in permanent removal of your catalog.

How We Detect Fraud

LUCY uses a combination of automated monitoring systems and manual review to identify suspicious streaming patterns. Our systems analyze streaming data for anomalies such as unusually high play counts from a small number of accounts, streams concentrated in unusual geographic patterns, abnormal skip rates, and sudden spikes in activity that do not correlate with marketing or promotional efforts.

We also work directly with streaming platforms that share flagged data about potentially manipulated tracks. When a platform identifies suspicious activity on a release distributed through LUCY, we investigate promptly. Our fraud detection processes are continuously updated to keep pace with evolving manipulation techniques.

Impact of Fraud on Artists

Streaming fraud harms legitimate artists by diluting the royalty pool. When platforms pay out royalties based on total stream counts, every fraudulent stream reduces the per-stream payout for honest creators. Fraud also damages the credibility of independent artists as a group, making platforms and playlist curators less willing to support independent releases.

Artists who are caught engaging in stream manipulation face consequences beyond LUCY enforcement. Streaming platforms may remove all of your music from their stores permanently, withhold pending royalty payments, and flag your distributor. This can affect your ability to distribute music through any platform in the future, not just LUCY.

Enforcement Actions

When LUCY identifies confirmed stream manipulation, we take graduated enforcement action. A first offense typically results in a formal warning, removal of fraudulently earned royalties from your balance, and a notation on your account. If the streaming platform has already withheld royalties for the affected release, those funds will not be paid out.

Repeated offenses or large-scale manipulation result in immediate account termination and removal of your entire catalog from all streaming platforms. ONE Studios Ltd. reserves the right to withhold any pending royalty payments associated with fraudulent activity. If you believe your account has been flagged in error, you may submit an appeal to our support team with evidence supporting your case. Appeals are reviewed within 14 business days.