Well, maybe not the whole story, as I've read it. Springsteen wrote that song ostensibly for inclusion on Darkness on the Edge of Town, but it ended up getting cut from the album. Springsteen's producer was also working with Patti Smith and asked Springsteen if she could do the song and Springsteen gave her permission. Like Dylan's version of Wagon Wheel, the lyrics may not have been completely finished, or she altered some of the lyrics and recorded it and it became a hit. Springsteen would perform his original version in concerts, maybe even as early as the tour for Darkness, and I believe it's shown up later in some Live albums or retrospectives. Haven't actually kept up with his releases the last 10-15 years.
PS, I just remembered that back in the day I had some old studio bootlegs of Springsteen stuff and there was one when they were working on that song and, Man, it was a rough cut at that time. LOL