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Tolkien's estate does not want hobbits being used in digital marketing. Photo: SCMP Pictures

Tolkien heirs sue moviemakers over merchandising

The heirs of late author J.R.R. Tolkien are suing the producers of The Lord of the Rings and The Hobbit movie trilogies over alleged exploitative merchandising.

The lawsuit, filed on Monday in the US District Court in Los Angeles, comes a week before the premiere of The Hobbit: An Unexpected Journey in Wellington. The first film in the trilogy hits cinemas worldwide next month.

The estate of Tolkien is upset at what it calls “morally questionable” digital marketing including an online slot machine, according to a copy of the lawsuit obtained by The Hollywood Reporter. The Tolkien estate is seeking US$80 million from Warner Bros, its New Line subsidiary and rights holder Saul Zaentz Company.

Warner Bros declined to comment on the claims.

Tolkien’s family contends a merchandising agreement extends only to tangible products such as figurines and clothing and not to electronic rights.

“Not only does the production of gambling games patently exceed the scope of defendants’ rights, but this infringing conduct has outraged Tolkien’s devoted fan base, causing irreparable harm to Tolkien’s legacy and reputation and the valuable goodwill generated by his works,” the family claims in the lawsuit.

The family says lengthy discussions with the producers over the disagreement proved fruitless and that it fears the scope of online merchandising will only increase with the release of the Hobbit movies.

Tolkien’s heirs settled a lawsuit over the Lord of the Rings movies for an undisclosed amount in 2009, allowing production to proceed on The Hobbit.

That lawsuit against New Line Cinema claimed Tolkien’s trust received only an upfront payment of US$62,500 for the three movies before production began, but was due 7.5 per cent of the gross receipts. The Rings films earned an estimated US$6 billion from movie tickets, DVDs and merchandise.

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