Apple Canada has confirmed it will return the proceeds of a levy made in Canada, following the courts rejection of the tax.

Apple said it: "Is pleased that the Supreme Court of Canada let stand a lower court ruling that blank media levies on iPods are invalid, and will shortly announce a claims process so customers can request a refund for the levies they paid."

Canada's Supreme Court recently rejected attempts to levy a special tax on iPods and other digital music devices. The tax was designed to compensate artists for illegal file sharing, but was quashed last year following protests by a group of companies, including Apple.

A local royalty collection body, the Canadian Private Copying Collective (CPCC), had been collecting the tax on behalf of musicians.

The rates were: $2 for non-removable memory capacity up to 1GB, $15 for 1-10G, $25 for over 10GB. CPCC had collected $4 million for artists.

The court declared the money must be returned.