Canada's decision to impose a surcharge on digital music players is being challenged by a group of manufacturers, including Apple, HP and Dell.
The move would mean Canada's consumers would have to pay as much as $25 (Canadian) extra on top of the cost of their players. The decision was made in December 2003. The fees collected are to be shared among musicians, songwriters and labels. Canada already applies similar surcharges on sales of cassette tapes and blank CD-R/RWs.
Canadian lawmakers also believe downloading files, including copyrighted works, to be legal, and has imposed the tax as a way to compensate copyright holders for such activity.