Bloomberg News is reporting that JibJab and EFF have actually filed a lawsuit to protect their right to distribute the parody (JibJab defends use of "This Land"):
"This Land" was made for you and me, JibJab Media says in a lawsuit seeking the right to use the Woody Guthrie song This Land Is Your Land in an online parody of President Bush and Sen. John Kerry....JibJab, which is run by brothers Gregg and Evan Spiridellis, says in its suit, filed Thursday in San Francisco federal court, that the video is a parody and doesn"t infringe on Ludlow Music"s copyrights.