The Larrikin Records label became widely known in 2009 after Larrikin Music sued the band Men At Work for allegedly stealing part of the melody of the song "Kookaburra Sits in the Old Gum Tree," whose publishing rights are held by Larrikin Music, in the music of their hit "Down Under". Warren Fahey, the former owner of both Larrikin Music and Larrikin Records, has always refuted claims that he was personally responsible for the action. Fahey had sold his music publishing company, Larrikin Music, to Music Sales Corporation in 1988 and Larrikin Records to Festival Music in 1995. In February 2010, the Federal Court ruled in Larrikin's favour and on 10 July 2010, Justice Jacobsen ordered Men At Work frontman Colin Hay, fellow songwriter Ron Strykert and EMI to pay Larrikin 5 per cent of future profits, as well as royalties dating back to 2002. EMI appealed the ruling, while Colin Hay "slammed" the court's decision, claiming it "will hamper musical creativity across the industry.". Larrikin's former owner Warren Fahey responded to the wide criticism against the court's decision and to Colin Hay's verbal attacks, by suggesting that Larrikin "gift this song to the nation. Fahey said that Larrikin "should be entitled to collect an appropriate settlement" but then "should allow the song its own life so as to ensure future young Australians can sing and perform it for generations to come, without limitation. The decision to sue the creators of "Down Under" was made by Norm Lurie, then the managing director of Music Sales, Larrikin’s parent company. When asked how much Larrikin would be seeking in damages, Larrikin's lawyer Adam Simpson replied: "anything from what we've claimed, which is between 40 and 60 per cent, and what they suggest, which is considerably less." In court, Lurie claimed that, had the parties negotiated a licence at the outset as willing parties, the royalties would have been between 25 and 50 per cent. Lurie defended the court action, stating: "Of course it would be disingenuous for me to say that there wasn’t a financial aspect involved, you could just as easily say what has won out today is the importance of checking before using other people’s copyrights." He added "I’d hope that Colin and the other writers of Men At Work don’t have a problem with people using some of their material for financial gain." In the Journal of media arts and culture, Steve Collins analyzed the procedure and concluded that "Pure financial exploitations of copyrights in cases such as this are more likely to have an adverse effect on the incentive to create and chill future creativity."
