Jul 29 2005

Top Canadian court turns down bid for extra tax on IPods, MP3 players

  • Written by Ne007
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Toronto — The fight over a levy on IPods and other digital music devices ended Thursday when the Supreme Court of Canada refused to hear any further arguments on the matter.

That means there will be no levy applied to digital audio recorders such as Apple’s popular IPod and IPod Shuffle as well as other MP3 players like IRiver.

“Obviously we’re disappointed. We felt it was self-evident that those products are sold for the purpose of copying music,” said David Basskin, of the Canadian Private Copying Collective (CPCC), the non-profit agency which collects tariffs on behalf of musicians and record companies.

The group had wanted the court to overturn last year’s Federal Court of Appeal decision that quashed the levy on the popular gadgets.

The non-profit agency had been collecting the tariff – $2 for non-removable memory capacity of up to one gigabyte, $15 for one to 10 GBs, $25 for more than 10 GB – since December, 2003, through a tax built into the price of the devices.

It stopped in December, 2004, when the Federal Court overturned the policy at the urging of retailers and manufacturers such as Future Shop, Apple Canada and Dell Computer Corporation of Canada.

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