Rather than people guessing and opining on incomplete news stories, why not just read the actual decision?

http://www.austlii.edu.au/au/cases/cth/FCA/2010/29.html

Most of your questions are answered there.

Colin Hay in direct and cross examination, and Greg Ham, the flautist, in an affidavit admitted that two bars (the "merry merry king of the bush is he" part) of "Kookaburra" is used in the second half of the flute riff. So it's in there and while technically that amounts to "half the song" it is only two bars, because "Kookaburra" is only four bars long. So yes, a two bar nod in the flute riff - a musical reference to Australiana.

The question really is, should a brief musical quotation for humorous effect amount to copyright infringement some 29 years after the recording is made?

I don't believe it should and if I were Colin Hay or EMI I would be appealing. If I were Ron Strykert, I'd also want to show up for court.

Shakespeare