AP News reports that French music rights holders may take legal action against Apple for unpaid levies on the iPod.
Hard drive players in France are expected to pay taxes based on their size. A top of the line iPod would be expected to pay $20 euros per sale. The proceeds go to musicians and "other rights holders" who may lose money to piracy. Similar levies are placed on blank media in other countries.
This report claims that Apple has no plans to pay the tax.