‘The Hobbit’/New Line Suit Settled

As we first reported to you back in mid-July, a lawsuit was brought by the estate of J.R.R. Tolkein against New Line, a division of Warner Bros., with the sole purpose of blocking production and distribution of the upcoming ‘Hobbit’ films. It all stemmed from the Tolkein estate  being a little miffed over the $220 million they felt was still owed by New Line to them.  There were even industry rumors flying around that somehow 20th Century Fox would claim the rights to the two ‘Hobbit’ films.  Well earlier today, both sides reached a settlement and it filmmakers, Executive Producer Peter Jackson and Director Guillermo del Toro, received the all-clear sign to go ahead with production of Tolkein’s 1937 classic.

Futhermore, according to Reuters:

Financial terms of the settlement were not released, but the author’s son, Christopher Tolkien, said in a statement that as a result of the agreement, “New Line may now proceed with its proposed films of ‘The Hobbit.'”

HarperCollins Publishers Ltd, a publisher of Tolkien’s works, joined trustees of the Tolkien estate in the lawsuit. The Tolkien Trust, a charity tied to the late author’s estate, has given away more than $8 million in the last five years.

So for now, all looks well for Bilbo Baggins and Middle-Earth and the 2-film series is set for release in December 2011 and December 2012.