It appears that this song circulated by samizdat and was played at many parties in Sweden before it made it to the web. It was originally written by the lebanese artist Azar Habib sometime in the 80s, at which a Swede working in Lebanon brought it back home. The Flash music video with subititles can be found at http://user.tninet.se/~prv247p/hatt/, or http://come.to/hatten.

This is my stab at an English translation. I think it reflects the slight disjointedness of the Swedish lyrics better, and the expletives are less prettified.

Lalalalalala... Ooooohhh-ohohohoh

To win kinky, fun
To win kinky, fun

The hat is yours, the hat is yours
The hat is yours, hat-baby

That hat leads such a fun life
That hat leads such a fun life

The hat is yours, the hat is yours
The hat is yours, hat-baby

This sucks big time
We think this becomes gayish
It always was fun

The hat is yours...etc

Lalalalalala...

Ooooohhh-ohohohoh

Cool guy with soft drink in hand
Yes, we think that - something sweet
Cool guy with soft drink in hand
Yes, we think that - something swe-eeet

Dropped the hat in Bert's cola-au-lait
Dropped the hat in Bert's cola-au-lait

But then you knew for sure, the hat is yours
But then you knew for sure, the hat is yours
But then you knew for sure, the hat is yours
But then you knew for sure, the hat is yours

The hat is yours...etc

Lalalalalala...

Ooooohhh-ohohohoh

Borrow the LP "The hat is yours"
You can dress up and make out on TV
Borrow the LP "The hat is yours"
You can do drugs and end up on TV

The hat is for sure yours, yours!
The hat is for sure yours, yours!

Everybody knows why and everything becomes perfect
Everybody knows why and everything becomes perfect
Everybody knows why and everything becomes perfect
Everybody knows why and everything becomes perfect

The hat is yours...etc

Lalalalalala...

Ooooohhh-ohohohoh

Glue a ham-piece, cooly
Glue a ham-piece, cooly, cooly

The hat is yours, the hat is yours
The hat is yours, hat-baby

That hat leads such a fun life
That hat leads such a fun life

The hat is yours, the hat is yours
The hat is yours, hat-baby

This sucks big time
We think this becomes gayish
It always was funny

The hat is yours...etc

Lalalalalala...