Fans will be happy to learn that two films based on The Hobbit will be moving forward.
In February 2008, the estate of J.R.R. Tolkien and Harper Collins Publishers sued New Line Cinema, claiming that the studio did not pay 7.5% of the revenue from the Lord of the Rings trilogy per their contract. The studio only paid $62 000, which was the upfront fee, while the film franchise generated 6 billion dollars.
Moreoever, the plaintiffs challenged certain expenses of the studio for advertising. A court decision was expected that would result in the end of New Line’s film rights to J.R.R. Tolkien projects.
However, according to The Hollywood Reporter, an agreement was reached to the satisfaction of all parties. The terms of the agreement have not been revealed, though the Tolkien heirs had requested $220 million for The Tolkien Trust, an organization that supports causes around the world.
Now, the studio can release two new films based on The Hobbit, the first of which is expected to be released in 2011.