Hobbit Lawsuit Settled Between Tolkien Estate and New Line Cinema

On Tuesday, a lawsuit was settled with HarperCollins, and the heirs of J.R.R. Tolkien, against New Line. HarperCollins and representatives of Tolkien's trust sued New Line last February claiming they were owed at least $150 million from the studio's "Lord of the Rings" films. These three films that were released between 2001 and 2003, made about $2.9 billion in worldwide ticket sales.

The lawsuit blocked filming of the prequel "The Hobbit." The terms of the settlement were not disclosed but Christopher Tolkien, the youngest son and one of the trustees of the renowned author said in a statement to The New York Times that, "The Trustees regret that legal action was necessary, but are glad that this dispute has been settled on satisfactory terms that will allow the Tolkien Trust properly to pursue its charitable objectives." The Tolkien Trust, a British charity supports cause around the world.

The two movies will follow a Hobbit name Bilbo Baggins and his grand adventure of treasure seeking, magic and warfare setting the stage for Tolkien's "Lord of the Rings" trilogy. Filming is expected to begin shooting next year in New Zealand. Guillermo del Toro, filmmaker behind "Pan's Labyrinth" and Hellboy," is set to direct the two movies. Peter Jackson, who directed "The Lord of the Rings" trilogy, will be an executive producer.