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Settling with Hobbits -- Being Proactive About Rights in Intellectual Property 05/04/2011
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The Tolkien Trust, holding valuable rights in the famed Hobbit and Lord of the Rings properties penned by its namesake, JRR Tolkien, is, I think, known to aggresively protect its intellectual property.   And with good reason -- its IP is valuable.  

In 2009, the Trust, together with Harper Collins, sued New Line and successfully negotiated a settlement over profit participation in the Lord of the Rings movies.  The original claim was substantial:

The Tolkien Trust and HarperCollins filed the suit in February 2008, alleging New Line had failed to pay at least $220 million to members of the trust. The plaintiffs had asserted that under a 1969 contract, the trust and other plaintiffs were entitled to 7.5% of gross receipts from the three films -- which grossed a combined $3 billion worldwide -- and related products, minus certain costs. 

One of the more interesting blogs to come across the desk in recent memory is The Frodo Franchise (sub-captioned: The Lord of the Rings and Modern Hollywood).  Ms. Thompson (who is not an attorney, but a writer and scholar of film) posted details of the suit here.

More recently, the Trust and Stephen Hillard sparred in federal court in the Western District of Texas.  Mr. Hillard is the author of Mirkwood: A Novel About JRR Tolkien, described as both fiction and "critical analysis" of Tolkien's works, curiously employing Tolkien as a character.  

Apparently, in response to a cease and desist letter from the Trust (a copy of which I've not found online) demanding the destruction of books already published, Mr. Hillard went on the offensive, seeking a declaratory judgment from the court under state and federal claims.  The lawsuit, which may be found here, settled as well, with a relatively rapid positive result three months after filing, apparently for both sides.    No mention is made of the terms of settlement, but the suit will be dismissed and the work itself will be published

:...the book will now be released with a modified reference to Tolkien on the cover and will also include the disclaimer, "This is a work of fiction which is neither endorsed nor connected with The JRR Tolkien Estate or its publisher." 
 
Of course, whether or not legal action is justified depends upon the facts of the case, the law implicated and their willingness to move forward aggressively.  However, these cases demonstrate that offensive and defensive action, including litigation, can lead to positive results.  
 


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    Richard Kuslan is an attorney in New Haven, CT, who represents small and medium sized business. Before working as an attorney, Rich marketed and sold technology in the US and Asia.  He is the founder and editor of AsiaBizblog, the internet's first weblog on Chinese business and law.

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