I won't bother arguing software vs tangible items with you. Software goes over the boarder without an official inspecting it. Its a totally different situation.
I'd love to see some proof apple doesn't report sales to the IRS as they're OBLIGATED TO in order to pay taxes. (Apple has to report ALL FUNDS (income, taxes etc) - not only the Securities and Exchange commission as it's a public company, but to it's shareholders. This includes the IRS. App store sales in California SHOULD be subject to sales tax, but Amazon is having fun with the tax man and things are a mess. Another story/legal battle.) Are you an apple developer? If so, I'd love to see the terms and conditions Apple sent to you.
If you must have google proof, You have to remember this is not NORWAY or the EU, they're operating in the UNITED STATES:
"Royalties from copyrights, patents, and oil, gas and mineral properties are taxable as ordinary income.
You generally report royalties in Part I of Schedule E (Form 1040), Supplemental Income and Loss. However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C or Schedule C-EZ."
-- http://www.irs.gov/businesses/small/art ... 13,00.html
They would report the royalty as a supplemental loss on the income made from making the product. (Batch makes a profit from the sold board, even if royalties are paid and thus taxes must be collected and reported if applicable! )
" For FDAP income paid to a foreign person to be subject to NRA reporting and withholding, the payment must be U.S. sourced.
Following are some basic rules for sourcing of certain types of FDAP payments by withholding agents and multi-nationals:
1- Interest – If the debtor is a U.S. resident, the interest is generally U.S. sourced.
2- Royalties – If the subject property is used in the U.S., the royalty payment is U.S. sourced. Payments made in connection with the sale of certain intangible assets, including copyrights and patents, are generally sourced similar to royalties when the payments are contingent on the productivity, use or disposition of the intangible See I.R.C. Sec. 865(d).
[ ... ]
The Internal Revenue Code sourcing rules are contained in Sections 861 through 865. Income tax treaties can sometimes modify these rules."
- http://www.irs.gov/businesses/internati ... 00,00.html
So if Canada and the US has a tax treaty (which we do), the tax rules are different than say, if there were no tax treaty.. ? Again, N number of rules for n number of countries where BatchPCB clients are located. Maybe Canada has an agreement to charge tax on royalties where Norway does not. Why should Batch research every international tax treaty so you can make $15-20 - and allow the possibility of stating pity battles with the tax man?
In all honesty, if your product is that great and has a re-sale market, you should have NO PROBLEMS AT ALL selling it yourself in your own jurisdiction.
EDIT: To clarify, FDAP is an acronym for Fixed or Determinable, Annual or Periodic. (Royalties would be determinable by the amount of boards sold.) NRA is a Non Resident Alien, "In general a non-resident alien is an individual whose permanent residence is outside of the United States and who is not a U.S. citizen." i.e. you or me. And for the record, The Canadian-US tax treaty states that any income I make in the USA while living in Canada MUST BE REPORTED by the IRS to the Canadian Revenue Agency, income taxes are applicable. If no reporting took place, I couldn't be subjected to the income tax bill as the Canadian Revenue Agency would be ignorant to the fact I had US income. There is no reason Norway would be different. I'm sure your government wants the money just the same as mine does.
Personal feelings: US tax law is a bit strange. My understanding is Americans still have to pay some percentage of income tax on income made outside their own country if they're a citizen, even if not residing in the USA. ALL lottery/gambling winnings in the USA are subject to income tax. If you're a "professional gambler" in the USA, you have to keep a log of your gambling winnings/losses/times/locations so you can be taxed accordingly. (Seriously.) Marijuana in the United States was initially legal only with a tax-stamp scheme. (Buy a stamp to possess marijuana, but you couldn't get a stamp without marijuana creating a legal-black-hole letting them toss you in jail for tax fraud instead of drug charges.. ). Some states, i.e. Florida residents, pay 0% state income tax. (?!)
Just leave it alone, start your own company in your own jurisdiction.
Final edit: in response to your "think geek gold" or whatever rewards points, please review:
"You must live in the U.S. or Canada.
(This is mainly because the laws regarding reward programs vary significantly from country to country and we can't manage them all without going insane! Sorry, no exceptions!)" -- you're just violating their terms of service and getting away with it. Nicely done.