A Dutch foundation is proposing a tax on MP3 players to compensate music copyright holders.
If this legislation comes into play, the surcharge, which is intended to compensate copyright holders for lost revenue due to piracy, could be €3.28 (£2.22) per gigabyte, that's an additional €180 (£122) added to the price of a top end iPod, claims The Register.
Previously the Stichting Thuiskopie foundation successfully lobbied for a surcharge on blank CDs and DVDs. It collects this quarterly and distributes it to copyright holders and charities, according to Digital Media Europe, writes Digital Media Europe.
The tax is set to become law in the Netherlands unless the European Commission finds a reason to intervene, states The Register.
Dutch trade association ICT Office believes the levy is unacceptable, "because it could also drive IT companies to bypass Europe and launch their new products in the US and Asia first, something which could have a negative impact on the Dutch electronics sector."
Another argument against the levy is that owners of iPods who obtain their music by legal means, would be purchasing copyright twice.