A ring of mire

Personally, I think Jackson deserves whatever he's owed, although my tears stopped flowing down my cheek when I read in the New York Times that he'd already received $200 million from New Line even before the lawsuit started. And Zaentz, who did produce Ralph Bakshi's animated "LOTR," holds the record for biggest payday earned for movies he didn't produce -- $188 million and counting.

According to the Tolkien lawsuit, part of the reason the Tolkien family has received no kwan from the films is that New Line has had to shell out so much money to previous rights holders Zaentz and Miramax (who both had 5% of the gross). New Line is including their fees in the cost of the negative, much as "a salary paid to the film's editor or gaffer."

Respectful disagreement

All of New Line's litigation has been assumed by its corporate owner, Warner Bros., which is making pains to at least sound more conciliatory. A spokesman gave us the following statement: "The Tolkien estate is currently auditing New Line's books and records for the 'Lord of the Rings' films and we are working closely with the estate's accountants and lawyers to facilitate and expedite this process. While we respectfully disagree with some of the estate's positions, we are hopeful that the dispute can be amicably resolved once the audit has been completed."

Recently, the judge in the case made a ruling that the Tolkien plaintiffs had not presented enough evidence to warrant their fraud and fiduciary claims but has given the Tolkiens a limited time to present more facts. Both sides are spinning the decision as a victory, and New Line is still on the hook for a potential $150 million in damages.

I wonder if the studio would have dared to treat Tolkien in such a cavalier manner if the author were still living. But those wiser in the ways of Hollywood explain that it's unusual for an author to share profits in the first place.

"Authors and estates rarely have the leverage and status to get a gross deal," says agent Michael Siegel, who represents Elmore Leonard and the estate of author Roald Dahl (which does get profit participation on film adaptations of his books). "It takes an extraordinary property with the right representation, and it's very rare. Even in 1969, this was the kind of property that deserved it.