Here's some background on trademark infringement:http://www.bitlaw.com/trademark/infringe.htmlhttp://cyber.law.harvard.edu/metaschool/fisher/domain/tm.htm#10
A jury trial could be tricky, although depending on how the jury instructions are worded it could easily swing in favor of either party. The burden of proof for these types of cases is a preponderance (a hair more than 50% likely). Magic Hat only has to show that confusion is slightly more reasonable than unreasonable to occur.
From the first link, these are the most important factors to consider in trademark infringement cases:
"1 the similarity in the overall impression created by the two marks (including the marks' look, phonetic similarities, and underlying meanings);
2 the similarities of the goods and services involved (including an examination of the marketing channels for the goods); "
From the second link, re: parodies "Finally, certain parodies of trademarks may be permissible if they are not too directly tied to commercial use."