Anti-Fraud Policy

1. Overview

ToneGrid maintains integrations with 150+ DSPs. The continued health of those relationships depends on every Client and End User distributing content lawfully and in good faith. Fraudulent or infringing activity damages royalty pools for all artists, triggers DSP-level penalties, and may expose ToneGrid and its Clients to legal liability.

Violations covered by this Policy include, but are not limited to:

• Intellectual property or trademark violations
• Significant levels of artificial or bot-generated streaming
• Violations of any DSP’s Terms of Use or content guidelines
• Violations of YouTube’s Content ID or monetisation policies
• Distribution of content without proper ownership or licensing
• Identity fraud or impersonation of artists

ToneGrid will notify a Client of any violation within 3 business days of the issue being discovered or reported to us.

2. Warning System

ToneGrid will issue up to two (2) warnings before considering account termination — except in extreme cases of violation or material prejudice to our business or DSP partners, where immediate termination may be necessary without prior notice.

The purpose of warnings is to place the potentially fraudulent or infringing account under closer scrutiny and to provide an opportunity to correct the situation. ToneGrid expects Clients to investigate such warnings and act promptly to ensure that their actions, or those of their End Users, do not lead to repeated violations.

3. First Warning

A first warning will be issued in the following cases of repeated violations:

• Parent-child accounts: When the same End User sub-account occasions an additional violation within 60 days of the issue first being reported to the Client.
• Direct accounts: When the same type of violation recurs within 60 days of the issue first being reported to the Client.

4. Second Warning

A second warning will be issued in the following cases:

• Parent-child accounts: Failure to act against a verified End User violation within reasonable timeframes and/or indicated deadlines on repeated occasions.
• Parent-child accounts: An increasing number of new infringing or fraudulent End Users under the Client’s account within a 60-day period.
• Direct accounts: Repeated cases of the same type of violation after a first warning has been issued.

5. Review for Account Termination

Upon issuance of a second warning, ToneGrid will discuss with the Client a remediation plan, including specific quotas and timelines, in order to avoid more severe actions against the account.

However, ToneGrid maintains the right to:

• Withdraw access to distribute to specific DSPs via a ToneGrid deal
• Suspend the Client’s account pending investigation
• Terminate the Client’s account entirely

These actions are considered a “last resort” but will be taken at ToneGrid’s sole discretion, regardless of the total number of fraud cases associated with the Client.

6. Consequences of Fraudulent Activity

If ToneGrid determines that a Client or their End User is breaching this Policy or our Terms of Service, we reserve the right to take any or all of the following actions:

• Take down Content from DSPs
• Withhold royalties and place them in escrow
• Disable distribution to specific DSPs for the Client and/or their End Users
• Terminate individual End User accounts
• Terminate the Client’s account in its entirety

To the extent any fraudulent or infringing activity is determined to be caused by the Client or their End Users, ToneGrid reserves the right to terminate the contractual relationship and close the account at any time. Any costs incurred by ToneGrid or our DSP partners (including legal fees and expenses) in connection with such activity may, in addition to other available remedies, be deducted from any future payments due to the Client. Additional legal action may be taken if damages exceed withholdings.

7. Unblocking an Account

The Client will receive a ticket or notice via email indicating that ToneGrid has detected potential infringing or unauthorised activity. The corresponding account will be blocked preventively while further information from the Client is requested.

When the Client provides the requested information within 5 working days, and the information can be verified, the account will be unblocked.

ToneGrid may request the Client to provide any or all of the following in order to unblock the account:

• Fully corrected account information
• A copy of a valid identification document (passport or national ID)
• Artist profiles, website URL(s), and active social media profiles (Twitter/X, Instagram, Facebook, etc.) showing historical activity consistent with the reported sales data
• Evidence of ownership or licensing for any disputed Content

8. Blocked Account Policy

In cases where a Client cannot or refuses to provide the requested information within 5 working days, ToneGrid may block the account and withhold revenues received in connection with Content that ToneGrid believes, in its sole discretion, violates our Terms of Service or our agreements with DSPs.

Clients with blocked accounts will not be able to access the ToneGrid platform and all Client Content will be taken down from DSPs. Royalties will be held in escrow until a period of 24 months has elapsed from the date of blocking, or until the dispute is resolved, whichever is earlier.

The 24-month escrow period reflects DSPs’ contractual right to reclaim royalties during that window on grounds of fraudulent or unauthorised activity.

9. Withholding Royalties (Escrow) for Blocked Accounts

ToneGrid may block and withhold revenues in any Client’s account that are received in connection with Content which ToneGrid believes, in its sole discretion, violates our Terms of Service or our agreements with DSPs. Withheld royalties are kept in escrow for a period of 24 months, or until a claim is received and resolved.

Withheld royalties will remain in escrow to respond to the following situations:

• An End User successfully demonstrates that their account is not fraudulent, in which case royalties will be released to the End User.
• A DSP submits a claim requesting a refund of royalties on the grounds that they were generated through unauthorised or fraudulent activity. DSPs have the right to reclaim royalties during the 24-month window.
• A legitimate rights holder submits a claim for payout of withheld royalties, including any royalties already paid to End Users whose activity is claimed to be unauthorised or fraudulent.

10. Reporting Fraud

ToneGrid takes all reports of suspected fraudulent activity seriously. If you believe Content on our platform infringes your rights or involves fraudulent streaming, please contact us immediately:

• Email: fraud@tonegrid.pro
• General enquiries: hello@tonegrid.pro
• For DMCA takedown requests, see our Terms of Service

All reports are treated in strict confidence. ToneGrid will acknowledge reports within 3 business days and keep the reporting party informed of actions taken.