I get the impression from a document linked above that it's Jean Ritchie who is trying to leverage her copyright to some new lyrics to "Nottamun Town" into a copyright over the Ritchie version of the melody. I don't know how else to account for her reference to having collected royalties from Bob Dylan, though there may be other explanations (e.g. maybe Dylan sometimes performed Jean's words.)
Those of you who, like McGrath and Grandma Marshall (may I call you "Bábushka" ?) and Sandy believe that "Songs are there to be used to make new songs" might want to reply (on or off forum) to this inquiry which was recently posted to the CNI Copyright Forum.
T.