Tolkien Trust sues New Line, may kill 'Hobbit'

oboreruhito writes: The Associated Press reports that the Tolkien Trust and HarperCollins are suing New Line Cinema for $150 million in compensatory damages, unspecified punitive damages and a court order revoking New Line's rights to produce any more films on Tolkien properties, saying New Line paid them only $62,500 to make "The Lord of teh Rings" trilogy of films and not the 7.5 percent of gross receipts of all film-related revenues. This would set back, if not kill, a film adaptation of Lord of the Rings prequel "The Hobbit," which Peter Jackson had recently signed up to make after his own legal row with the studio over payment for the sequels.