Anti-Fraud Policy

For End-Users

Table of Contents:

  1. Introduction
  2. Definitions
  3. Policy
  4. What DMS are doing about it
  5. What we are doing about it
  6. How we deal with suspected Fraud
  7. The consequences of Fraudulent use of our Platform or Services
  8. Severity, Strike Policy and Account Blocking
  9. Severity
  10. Strike Policy
  11. Blocked Account policy
  12. Withholding Royalties (“Escrow”) for blocked accounts
  13. Takedowns


For the purpose of this Policy, the “End User” will be the person or legal entity that has entered into a contractual relationship with Us, accepting the Terms of Use and providing content that will be made available on Digital Streaming Platforms (or DSP). "We" or "Us" are the providers of the service, FREECORDS.

This Anti-Fraud Policy sets a course of action for the End Users of our platform and services, and defines the actions taken and consequences of Fraudulent behaviour.

Specifically, the purpose of this Policy is to provide:

This document is intended to provide guidance and should be read in conjunction with:


End User: Is the person or legal entity that has entered into a contractual relationship with FREECORDS for the use of the platform, accepting the Terms of Use and providing content that will be made available on DSP.

End User Account: Accounts owned and/or created by End Users.

DSP: Digital Streaming Platforms (such as Spotify, Apple Music, Tidal, etc.) or any other channel connected to Us by a contractual relationship.

MDFS: Monetization through Digital Fingerprinting Systems (i.e. YouTube Content ID, Facebook Rights Manager, among others).

Fraud: Any activity contrary to the Law, the DSP Policies and/or our own. Particularly, but non-exclusively, we will categorize as Fraud the following activities:

Royalties: Economic income/revenue that corresponds to the original(s) rightsholder(s). We differentiate between “legitimate royalties” which are the result of an actual and rightful exploitation of any content, and “illegitimate royalties” which are the result of any fraudulent exploitation or activity that generates illicit and unrightful income.

Strike: A Strike is a severity applied to any account that violates our Anti-Fraud Policy. They are separated into three tiers (Strike 1, 2 and 3), from lowest to highest severity respectively, and applied cumulatively. However, according to the impact of the violation, the highest severity shall be directly applied.


Fraud in all its forms is wrong and is unacceptable to us. This is because when fraud occurs:

Our objective is to avoid and, if necessary, eliminate fraudulent usage of our Services. Any indications of fraud will be rigorously investigated and dealt with in a firm and controlled way.

Severity, Strike Policy and Blocking of Accounts

Withholding Royalties (“Escrow”) for blocked accounts:

Revenues in any End User Account that are received in connection with content that We believe, in our sole discretion, violate the Terms of Use may be blocked and withheld. The royalties will be held in escrow for a minimum of 24 months, and up to 5 years, in accordance with DSPs policies and the Civil Code of the Netherlands or until the dispute between claimant and claimed parties is solved, in order to be able to respond in the following scenarios:


We will initiate takedowns of confirmed infringing content from End User Accounts, that is, all content that is involved in F0, F1, F2 and/or F3 issues.

Regarding F3 issues, despite the fact that only a part of the End User’s content is confirmed to be fraud related, We, at our sole discretion, may initiate takedowns for the End User’s entire catalog.

However, please also note that any content may be marked as suspicious by DSP at their sole discretion and may be taken down.