EMI filed its own separate lawsuit against Premise in a New York state court alleging that Premise’s usage of the song is harming EMI’s ability to license “Imagine,” which has only been licensed in one film (The Killing Fields).
In court, Judge Richard Lowe, according to the Wall Street Journal, “seemed skeptical” about Falzone’s arguments. Lowe asked Falzone why the film’s producers did not read the lyrics to the song or flash the lyrics on the screen. Lawyers also pointed out that Premise Media licensed all other music in the film except for Lennon’s song.
So, they’ll probably just make them remove that segment of the movie and/or make them pay a bunch of money. I don’t think they’ll really prevent the film from being shown in Canada or distributed on DVD.