"The Hobbit" hobbled by Tolkien lawsuit, now ready to fly

"I cannot imagine how on earth New Line will argue to a jury that these films could gross literally billions of dollars, and yet the creator's heirs, who are entitled to a share of gross receipts, don't get a penny," lawyer Bonnie Eskenazi said in a statement at the time.

Lawyers had been seeking 150 million dollars in compensatory damages, punitive damages and the right to strip New Line of its right to make any further films based on Tolkien's work, including the "The Hobbit."

SHOOT: Lookin' forward to it...

clipped from news.yahoo.com LOS ANGELES (AFP) – The estate of fantasy writer J.R.R Tolkien has reached a settlement with the studio behind the "Lord of the Rings" movies after alleging it had not received "even one penny" of royalties from the trilogy of money-spinning films, officials said Tuesday. Tolkien said he and other 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 trustees acknowledge that New Line may now proceed with its proposed films of 'The Hobbit,'" Tolkien said in a statement. "We deeply value the contributions of the Tolkien novels to the success of our films and are pleased to have put this litigation behind us," Horn said. "We all look forward to a mutually productive and beneficial relationship in the future." The three films have grossed around three billion dollars at the worldwide box office.