Intellectual Property Law

Did IP and Hollywood Shenanigans Sink New Line?

By Posted by Alan Wexelblat

File this under "rampant speculation." The headline is that New Line Cinema, maker of the Lord of the Rings movies, is calling it quits, with top execs out and assets being snapped up by Warner Brothers. Question: did the ongoing legal problems over those movies sink the studio?

End of last year it looked like New Line was in the clear, having finally settled its long-running legal battles with Peter Jackson, and green-lighting two "Hobbit"-based movies. But just about four weeks ago trouble broke out again with the Tolkien estate suing New Line for... well let's call it "cheating them blind."

Ironically, just about the time this suit was filed I pointed to an LA Times piece on how Disney had screwed over a naive young author. The Tolkein estate isn't young and it has lots of money to hire lawyers. Their primary claim seems to be the same, though - given the massive grosses taken in by the Rings movies they've been paid, um, let's see here... NOTHING.

I can't figure out from the various news stories whether WB is taking on all of New Line's debts and obligations or whether those will be shed the way New Line's 600 employees will be. Assuming that WB still wants to see the Hobbit movies made (on the "we will make another kajillion dollars this way" theory) then they'll probably come up with some kind of settlement that leaves them in clear control of the rights.

Full post as published by Copyfight - The Politics of IP on March 14, 2008 (boomark / email).