This is great news for iPod users in Canada... The Canadian Supreme Court overturned a lower court's piracy tax ruling and Apple will be returning the money it collected.

Apple Computer has announced it will refund the "piracy tax" the Canadian government put on every iPod sold in the country.

Although the Canadian Supreme Court declined to hear a challenge to a lower-court ruling that the tax--a levy put on all recordable blank media, such as tapes and CDs, to compensate the music industry for piracy--was unlawful, the levy had affected new iPod buyers for more than a year.