Hollywood Gives Writers No Respect, Example #946

From the detailed press coverage of the writers strike we knew that Hollywood studios had no respect for the work that scribes do, but this is taking things a bit too far. Apparently, the powers that be assholes at New Line Cinema feel that a one-time payment of $62, 500 is just compensation for the creative source of the $6 billion movie franchise The Lord of the Rings. Yesterday, the trustees of the estate of J.R.R. Tolkien sued New Line Cinema for breach of contract. According to Box Office Mojo, the multiple Oscar-winning trilogy has grossed nearly $3 billion worldwide. According to their contract, Tolkien (or his heirs) were to receive 7.5% of "gross receipts" after expenses. Nikke Finke at the must-read Deadline Hollywood Daily has the press release:

The Lord of the Rings films produced by New Line are among the most financially successful films ever created by Hollywood and were released in 2001, 2002 and 2003 respectively. The cumulative worldwide gross receipts to date total nearly $6 billion. Notwithstanding the overwhelming financial success of the films, and the fact that the plaintiffs have a gross participation in each of the films, New Line has failed to pay the plaintiffs any portion of the gross profit participation at all. [emphasis added]

The trustees’ UK lawyer, Steven Maier, of Manches LLP, said: “The Tolkien trustees do not file lawsuits lightly, and have tried unsuccessfully to resolve their claims out of court. But in this case, New Line has left them no option at all. New Line has not paid the plaintiffs even one penny of its contractual share of gross receipts despite the billions of dollars of gross revenue generated by these wildly successful motion pictures. To make matters worse, to date New Line has even prevented the plaintiffs from auditing the last two films of the series. The trustees are very aggrieved by New Line’s arrogance.”

The complaint seeks, among other things, in excess of $150 million in compensatory damages, as well as punitive damages, and a declaration from the Court that the plaintiffs have a right to terminate any further rights New Line may have to the Tolkien works under the agreements, including The Hobbit, due to the serious and material nature of the breach of the agreements.

Bonnie Eskenazi, the trustees’ US counsel who filed the complaint, said, “New Line has brought new meaning to the phrase ‘creative accounting.’ 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.”

It should be noted that the Oscar-winning director-screenwriter-producer Peter Jackson had to sue New Line to receive just compensation, so maybe it's not just the writers the suits try to screw over but all creative talent.

However, by dissing the goose that lays the golden eggs, New Line is jeopardizing its previously announced participation in the movie version of The Hobbit, another book written by Tolkien which is a prequel to The Lord of the Rings trilogy.

If New Line (or Time Warner if the rumors are true) doesn't pay the Tolkien Trust some significant fraction of the $150 million that they owe them, this is one Tolkien fanboy who will be boycotting the two new Lord of the Rings films planned for December 2010 and 2011.