Apple to return 'piracy tax' to iPod buyers

Apple Computer has announced it will refund the "piracy tax" the Canadian government put on every iPod sold in the country.

Although the Canadian Supreme Court declined to hear a challenge to a lower-court ruling that the tax--a levy put on all recordable blank media, such as tapes and CDs, to compensate the music industry for piracy--was unlawful, the levy had affected new iPod buyers for more than a year.

Apple said it will be refunding the levy, which was first introduced in 2003, to its Canadian customers shortly.

The company said in a statement: "Apple is pleased that the Supreme Court of Canada let stand a lower court ruling that blank media levies on iPods are invalid and will shortly announce a claims process so customers can request a refund for the levies they paid."

The Canadian government taxed the iPod buyers $2 for storage up to 1GB, $15 for 10GB or less, and $25 for more than 10GB--leaving mini iPod owners with $15 less in their pockets, while full-size iPods saw $25 added to their price tags.

The rights-holders organization that receives the royalties from sales of blank media, the Canadian Private Copying Collective (CPCC), made $4 million from the levies placed on iPods and other MP3 players.

The monies generated by sales of the iPod will now be returned to Apple.

Jo Best of Silicon.com reported from London.

[R. U. Sirius]

A "piracy" tax?

This is exactly why the public has no respect for the recording industry. In any other venue, this practice has a name: extortion. Sounds a lot like the old mafia practice of skimming money off of local businesses to provide "protection." But in the case of the RIAA, it's supposed to be acceptable.

Bravo to the Canadian courts for doing the right thing.

[bobby_brady]

There is a piracy tax on blank "audio" CD's

Although "audio" and data cd's are the exact same, the only difference is the "audio" CD has a larger "piracy" tax than the data CD.

It's all about the crooks in the RIAA trying to extort more money from the public.

[hrllew]

MP3 Player Tax

That's what happens when you have French people running things. Everything gets taxed, things cost more and they will always be babies about everything.