Originally posted on JRR Tolkien Examiner on 9/1/09.
Leading Lord of the Rings movie blog TheOneRing.net is reporting that a tentative settlement has been reached in the lawsuit between the heirs of author JRR Tolkien and New Line Cinema. The suit threatened to derail production of New Line’s upcoming two part film adaptation of The Hobbit.
TORn quotes their anonymous source:
A tentative settlement has been reached in the case… but it needs to be approved by certain unnamed individuals/entities. …I’m relatively sure that it includes specifications to ensure that payments are made on the Hobbit films… In all likelihood, this case is no longer going to provide any obstacle to the Hobbit films.
The lawsuit was filed in February 2008 by the Tolkien Trust, the British charity founded in 1977 that manages Tolkien’s estate. It alleges that New Line has failed to pay Tolkien’s heirs more than $220 million. The Trust claims that under a contract signed by Tolkien in 1969, his heirs and others are owed 7.5% of the films’ gross receipts and related profits.
The case was expected to go to trial in October.
The three films cost $285 million to produce, market and distribute. To-date they have generated $2.8 billion in gross revenue.