Springsteen wrote this ballad sometime between 1998 and 2000. He was inspired by Harry Potter books that he was reading to his youngest son Sam. This is not a children's song however. Sometime in early 2001 Springsteen made the song available to director Chris Columbus, who at the time was shooting the first of the Potter movies. A Springsteen recording of the song was filed with the US Copyright Office on 13 Jun 2001. However, the Springsteen song was ultimately rejected due to Harry Potter novelist/creator JK Rowling's contractual stipulation that no commercial songs of any type be used in the Harry Potter film series. Warner Bros Music President Gary LeMel, who was involved in the Potter music, was asked by USA Today about this Springsteen song but said he preferred not to comment publicly. In doing so, he seemingly verified the basic truth in the story.
(Thanks for indulging; I have the morning off and I am waiting for the dryer to stop )