January 14, 2004

Challenge to Canada’s MP3 Player Levy [8:47 am]

Canadian MP3 player tax challenged

MP3 player manufacturers, including Apple Computer, Dell and Hewlett-Packard, are challenging a recent regulatory ruling in Canada that would impose an extra fee of as much as $25 on iPod-like digital music players.

The Copyright Board of Canada ruled in December that hard drive-based digital music players should be subject to fees aimed at compensating musicians, songwriters and record labels for copyright infringement. Similar fees are placed on blank audio tapes and CDs, and manufacturers typically pass on the costs to the consumer.

A group of retailers, including Wal-Mart Stores and Best Buy, also is appealing the decision, which will be heard by a federal court.

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