Japanese artist royalty agencies have been spurned in their demands for an 'iPod tax'.

Publishing rights and collection group JASRAC (Japanese Society for Rights of Authors, Composers and Publishers) had wanted to see a levy made on the sale of digital music players, including iPods.

A similar surcharge is already applied against blank CDs, DVDs and digital recording devices. Money is distributed to rights holders (mainly music publishers) in an attempt to compensate musicians for illegal file-sharing.

However, a subcommittee under the Copyright Subdivision of the education ministry's Council for Cultural Affairs is expected to release a report this week that declares the entire fee system should be reviewed by fiscal 2007, according to Asahi.com. This review is expected to recommend applying a surcharge on iPods in the future.