Kickin’ the Hobbit

Not that any of us ever thought it’d stopped “The Hobbit” from going ahead – but someone over at MGM let out a sigh of relief this morning, I’m sure.

New Line has settled with the Tolkien Trust and HarperCollins in a suit over profit participation by Tolkien’s heirs in “The Lord of the Rings” trilogy, says Variety. This means New Line and MGM are now able to go ahead with “The Hobbit” (like they were anyway) without legal challenge (which they likely would’ve just bought themselves out of anyway).

“We are pleased to put this litigation behind us,” said Alan Horn, prexy of New Line parent Warner Bros. “We all look forward to a mutually productive and beneficial relationship in the future.”

The Tolkien Trust and HarperCollins filed the suit in February 2008, alleging New Line had failed to pay at least $220 million to members of the trust. The plaintiffs had asserted that under a 1969 contract, the trust and other plaintiffs were entitled to 7.5% of gross receipts from the three films — which grossed a combined $3 billion worldwide — and related products, minus certain costs.

The plaintiffs had also sought a declaration from the court that the plaintiffs could terminate any further rights New Line had to the Tolkien works under the agreement — which would have included “The Hobbit” films, which are being produced by “Lord of the Rings” producers Peter Jackson and Fran Walsh.

“The trustees regret that legal action was necessary, but are glad that this dispute has been settled on satisfactory terms that will allow the Tolkien Trust properly to pursue its charitable objectives,” said Christopher Tolkien, son of the author, in a statement. “The trustees acknowledge that New Line may now proceed with its proposed films of ‘The Hobbit.'”

The first of the two “Hobbit” movies, set to be directed by Guillermo del Toro, will lens early next year.