Businessman-turned-politician Clive Palmer allegedly breached the copyright of a famous metal song in political advertising after he requested a licence and "didn't like the price", a court has heard.

Mr Palmer used a rewritten version of the Twisted Sister track We're Not Gonna Take It in his party's television and online advertising in January.

Key points: Universal Music launched the copyright case after Mr Palmer used the song during his election campaign

Universal Music launched the copyright case after Mr Palmer used the song during his election campaign Mr Palmer dismissed the complaint, claiming he owned the copyright to his own lyrics

Mr Palmer dismissed the complaint, claiming he owned the copyright to his own lyrics Twisted Sister frontman Dee Snider will be a key witness if a trial goes ahead

Universal Music launched an intellectual property case in the Federal Court, alleging the hair-metal band's copyright had been breached and is seeking royalties.

In Sydney, the court today heard mediation in October "substantively failed".

Universal's barrister Patrick Flynn SC said the organisation would seek additional damages on top of the royalties.

"The reason the additional damages case arises is the evidence Mr Palmer requested a licence from our client," he said.

"He knew that he needed one. He didn't like the price, is our case, and so he went ahead."

Both parties will seek the opinions of expert musicologists to answer the question of whether the musical and literary elements of each track overlap.

The court heard Mr Palmer will partially rely on a defence of fair dealing for the purposes of parody or satire.

US glam rock band Twisted Sister have taken businessman Clive Palmer to court. ( Supplied )

Mr Flynn said there was also a suggestion in the evidence that the original track was a copy of the Christmas carol Oh Come All Ye Faithful.

The band's frontman Dee Snider will be a key witness if a trial goes ahead next year, however the court heard there is disagreement about whether this should be allowed to happen over video link.

Mr Flynn said Universal had difficulty with Snider's availability because he is directing a film in America next year.

Mr Palmer initially dismissed the band's complaints and said he owned the copyright to his own lyrics.

Snider immediately distanced the group from Mr Palmer's party when he was alerted to the advertisements.

Mr Palmer accused members of wanting publicity and said the situation involved "old rocker(s) who can not sell enough tickets to their last gig need publicity".

Justice Anna Katzmann ordered the parties to file an agreed statement of facts by the end of February and listed the trial for October 2020.