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Tolkien Estate Files $80M Lawsuit Against Warner Bros.

The estate of J.R.R. Tolkein, author of the "Lord of the Rings", has filed a suit of $80 million against Warner Bros.

The estate claimed that the studio was "usurping rights to which they are not entitled" by merchandising "Lord of the Rings" and "The Hobbit" for online games and gambling slots.

"The Tolkiens and publisher Harper Collins sued Warners, its New Line subsidiary, and LOTR/Hobbit screen rights holder Saul Zaentz Co. on Monday claiming they've violated a decades-old agreement to make only 'tangible' merchandise and consumer products based on the books," IGN reported.

Tolkiens and Harper Collins were offended by the extent of digital exploitation, especially of Lord of the Rings: Fellowship of the Ring: Online Slot Game. Further, they were also angered by the fact that Warner Bros. was planning traditional slot machines featuring "Lord of the Rings" characters.

A contract signed in 1969 reserved the rights for the Tolkiens. The defendant's rights included "only 'tangible' merchandise, not downloadable video games available only on mobile devices or tablets or Facebook."

"Defendants also have asserted and continue to assert that they have rights relating to a wide variety of goods and services beyond 'articles of tangible personal property' and have registered trademarks and/or filed 'intent to use' applications in those same categories, including without limitation hotels, restaurants, travel agencies, ringtones, online/downloadable games and housing developments -- categories of rights which plainly have not been granted to them," Hollywood Reporter reported.

"Not only does the production of gambling games patently exceed the scope of defendants' rights, but this infringing conduct has outraged Tolkien's devoted fan base, causing irreparable harm to Tolkien's legacy and reputation and the valuable goodwill generated by his works."

The lawsuit also claims that there have been settlement talks between the plaintiff and the defendant, but they were not useful.

"The Hobbit: An Unexpected Journey" will release on Dec. 14.

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