$4 million collected to date from customers.

Apple Computer said it will refund the so-called "iPod tax" Canadian customers paid since 2003.

Canadian courts ruled the tax illegal last year but customers there continued to pay the tax as it was appealed to the country’s Supreme Court, which recently declined to hear the challenge.

The tax charged customers $2 for all devices containing up to 1 GB of storage, $15 for 10 GB or less, and $25 for anything larger. The Canadian Private Copying Collective collected the funds, totaling $4 million to date. These funds are now being returned to Apple, who will in turn pass the refunds to customers.

"Apple 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," the company said in a statement.

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