A French court has ruled that online retailers shipping music players to addresses in France must warn the customer that they will have to pay the "iPod tax" once the device arrives in the country.

France enacted a levy designed to compensate copyright holders to the tune of €40 per device for illegal file copying. French retailers roll the levy into their price, making vendors outside France more attractive, price-wise. The levy applies to music players, USB storage, and blank media.

While the warning is now necessary, it's no guarantee that the tax will be paid.

The UK, Canada and Japan have all considered or tried a similar fee, but all have failed for one reason or another.

[Via The Register.]

Stories about cell phone unlocking and resales have hit the news recently. TracFone sued numerous resellers who (legally) bought inexpensive subsidized units, unlocked them and sold them overseas. In the iPhone world, the story differs. Rather than leveraging subsidized prices, the way the TracFone defendants did, iPhone resellers added value on top of the unsubsidized units. They bought the phones, unlocked them and sold them for a profit.

The story gets more interesting with the current generation "no commitment" iPhones. The latest 3G "no commitment" iPhone pricing appears to include an extra $200 profit margin on top of the $200 subsidy.

TUAW reader Adam Jenkins offers proof. In Massachusetts, purchasers pay tax on the full unsubsidized phone price, regardless of carrier subsidies. The 5% sales tax for his new 16GB 3G iPhone came to $24.95. Clearly, Apple and the State of Massachusetts believe the unsubsidized 16GB price is $499, not the $699 "no commitment" price. That extra $200 offers a nice cushion on top of the unsubsidized sale, providing pure profit.

What's the opposite story of resellers taking advantage of cell phone subsidies? Seems to be the 3G iPhone.

For years, legislators in Japan have wanted a portion of the price of a digital recording device (up to 3%) to go to recording companies, songwriters and artists. The so-called "iPod tax" has met opposition from electronics manufacturers, as you could imagine.

However, it looks like it's not going to happen. A group failed to create an agreement yet again this week, prompting official Masafumi Kiyota to say that "...there is virtually no hope for getting the legislation passed." Certainly good news for consumers.

Other electronic devices like minidisk players and DVD recorders have a copyright tax built into the price tag in Japan. The logic (if you want to call it that) is that consumers will use these devices to illegally acquire copyrighted material, so why not have them pay for it before hand, as a preemptive strike? Sounds to me like someone has contempt for their customers.

Bad news for our buddies up north: Canada's Private Copyright Collective (CPCC) is hoping to tax consumers who purchase portable MP3 players, planning to compensate musicians for money lost due to copyright infringement and music copying. The Canadian federal court turned down the previous lobbying attempt made by the CPCC last year, because their law did not recognize portable players' hard drives and memory storage among its list of recording media. However, this hasn't stopped the CPCC from trying again, with a new proposal that suggests taxes on MP3 players in the amounts of $5CAD for players with up to 1GB of storage, $25CAD for players up to 10GB, $50CAD for players holding 10GB-30GB, and $75CAD for any player holding more than 30GB. Steep. In addition to MP3 players, the CPCC hopes to include memory cards (SD, MMC, Memory Sticks, etc.) to the list of taxable items. (Insert eye rolling here.)

(via MacNN)

The state of New Jersey is suffering from a slight $4.5 billion debt problem. Macenstein is reporting that amidst a recent sales tax increase and a frantic session of checking the sofa for change, Governor Jon Corzine has expanded the list of items which can be taxed to include, amongst other things, iTunes Store purchases. This means that all iTS downloads will be taxed at the same recently raised 7% rate of other newly taxable items such as storage space, tanning, health club memberships and security alarms.

Interestingly, Dr. Macenstein also reports that he'll be trying to work around the new charges by changing his virtual iTS address to another state. C'mon Dr. M, you need to pay up for your tanning and limousine luxuries just like everybody else.