According to some lines of reasoning Larrikin's claim to the copyright is dodgy to begin with.
Spaw's comment is more along the lines I was thinking.
The content in question seems to be an 11-note sequence comprising 3 of the five tones in a pentatonic scale. The harmonic context of the flute riff is not even the same as the harmonic context of the original (minor vs major). Very thin.
On the other hand, the ozzie cultural connection may be stronger than I realize from where I sit. In that case, is it a violation of copyright to musically "quote" a few notes out of something?
On the whole it looks like legal eagles trying to justify their own existence (and cash in on someone else's success) at the expense of common sense and decency; another instance of bullying tactics that seem to be the growing norm in the music world. Harrumph indeed.
-Glenn