YouTube, of course, took down the video, and a back and forth between lawyers ensued, with Summit claiming that the image represented trademark infringement -- and claiming that YouTube "does not differentiate between copyright infringement and trademark infringement." I'm not quite sure that's true, and it makes me wonder if Summit actually sent a DMCA notice, which you're not supposed to use for trademarks, or if it sent a different type of takedown notice (entirely possible). Either way, Smith has sued first, claiming misrepresentation by Summit, and saying that the song clearly doesn't infringe on Twilight's copyright, because it was written well before the Twilight Saga existed. Of course, as the article at THResq notes, in doing so, Smith also shows that he misrepresented himself in advertising that the song was "inspired" by the Twilight Saga.
It doesn't seem like he really has much of a case here. While I think it was probably pretty pointless and petty for Summit to issue the takedown, it's entirely possible that the guy was infringing. The real question is whether or not Summit really did make a copyright claim here, rather than a trademark claim -- but even if that's the case, I can't see the "damages" being that high. Either way, it seems like another silly intellectual property-inspired legal fight, that has little to do with what either copyright or trademark law were intended to do.
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