Funnily enough SWT has just posted another video after being in contact with Warner and explains more of what transpired and was understood between him and Lucasfilm (including an offer from him for them to monetise the video for themselves if he was allowed to crowd fund in order to pay for the fan film instead of using his own money):

Essentially Warner said if he tried to fight the claim they would take the money (earned thus far I assume), take down his channel and delete the video. He told them no probs, take the money, it was never about the money, he made it as a fan for the fans and just wants it to be available for them and for his channel to be left alone.

Val