While a court case against US outfit Twisted Sister is allegedly on the horizon, Clive Palmer has now been threatened with legal action by Culture Club's manager for his use of the UK band's iconic track, Karma Chameleon, in a new mobile phone video game. 

As ABC reports, the game has been launched to promote Palmer's United Australia Party ahead of the March election, with the lyrics being changed to "Palmer Chameleon".

Culture Club and frontman Boy George's manager, Paul Kemsley, said their record label, BMG, are now investigating. .

"Boy George's song and art would never be used to endorse any political campaign," Kemsley said.

"I'm horrified at the treatment of one of the biggest-selling songs of all time.

"It should never be used as part of a political agenda."

Kemsley has confirmed the band will take legal action if Palmer and the UAP don't pull the game and any advertising associated with the 1983-released song. 

It comes after Palmer and Twisted Sister frontman Dee Snider butted heads this month after the UAP used a re-written version of their tune, We're Not Gonna Take It, in a TV advertisement.

After two weeks of tweets and lawsuit threats between the pair, Snider alleged yesterday that the matter will be going to court.