Canadian retailers Best Buy and Future Shop have said they will reduce the price of iPods following Apple Canada's decision to lower the player's prices.

The reductions come on the heels of a Federal Court of Appeal ruling, made last week, that Canada's Board of Copyright is not permitted by the country's Copyright Law to tax MP3 players.

While the law expressly allows the Board to tax blank media such as cassettes, MiniDiscs and CD-Rs, the statutes wording does not grant the Board licence to do so with other products, the Court ruled. The proceeds of the tax are distributed to artists and record labels to compensate them from loses due to piracy and home taping.

The upshot is that Apple Canada will no longer have to pay $25 for every 40GB and 20GB iPod it sells, or $15 for each 4GB iPod Mini, Marketnews.ca reports. Apple's Canadian online store is now offering the 20GB iPod for CAD399 ($321), down from CAD429 ($346) last week. ®

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