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    Hobbit Lawsuit: Warner Bros. Countersues Tolkien Estate, Alleges Breach of Contract Over Gaming Rights

    Lord of the Rings, Two Towers, Gollum New Line Cinema

    Legal battles are not so precious.

    Warner Bros. filed a lawsuit against author J.R.R. Tolkien's estate Monday, claiming breach of contract over The Hobbit and Lord of the Rings licensing opportunities.

    In November, it was Tolkien's estate and the his publisher, HarperCollins, that filed an $80 million suit against the studio, alleging they lost out on royalties from ancillary sources of income—including The Hobbit online slot machines and games—since selling the film rights in 1969.

    Read more about the November Hobbit lawsuit

    Then in January, per The Hollywood Reporter, the films' rights holder, Saul Zaentz Co., made a counterclaim that Tolkien's estate has breached an implied contract of good faith and fair dealing.

    Now, Warner Bros. is alleging that Tolkien's estate's contempt has cost them millions in licensing opportunities and is demanding damages for the alleged breach of contract.

    Find out about another Hobbit vs. Hobbit lawsuit

    In a lawsuit obtained by THR, the studio claims to be the successors-in-interest in merchandising and other rights because of its 1969 purchase of film rights. Warner Bros. also claims that 16 years ago, Tolkien's estate confirmed the studio had rights to online video games. But in 2010, when a "regrant agreement" was put into place, there was confusion over these rights, which resulted, the studio's suit alleges, in halted plans for Hobbit-themed casino slot machines. "This alone cost Warner millions of dollars in license fees," the lawsuit states.

    Bonnie Eskenazi, the Tolkien estate's attorney, told THR that the counterclaims "are nothing more than an effort to sue the Tolkiens and HarperCollins for suing them. They are entirely without merit and are a classic example of studio 'bullying tactics.'"

    The Tolkien estate lawyer also claims that the November lawsuit was their way "to force WB and Zaentz to live without the boundaries of the contract to which they agreed" and that the studio's counterclaims "are simply an attempt to punish the Tolkiens and HarperCollins for having the nerve to stand up to the studios and tell them that they can't take more rights than were granted to them by contract."

    Check out these Hobbit posters

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