Men at Work have been ordered to pay compensation after a court ruled they had plagiarised one of their biggest hits from a Girl Guides song.

Larrikin Music filed a copyright lawsuit against the group, claiming the flute riff from their 1980s hit 'Down Under' was stolen from a song by teacher Marion Sinclair.

The track, entitled 'Kookaburra Sits in the Old Gum Tree', was written in 1934 for a Guides competition.

A federal court in Sydney ruled today that the riff had been taken from Sinclair's song and ordered the band to pay compensation.

Larrikin Music, who owns the rights to the song, told the Associated Press it may seek up to 60% of the royalties 'Down Under' has made since it was released.

Both parties are due back in court on February 25 to discuss the compensation.

(by Jason Gregory)