The rights war over The Hobbit is treading on ground well beyond Middle-earth, exploring the ethical obligations of those funny characters known as "lawyers" and even reaching the obscure judicial authority of the Isle of Man.
The estate of J.R.R. Tolkien and book publisher HarperCollins launched the lawsuit in November 2012, claiming Warner Bros. and Saul Zaentz Co. had infringed copyright and breached contract by taking Lord of the Rings and The Hobbit into allegedly impermissible places. Specifically, the plaintiffs contend that that the decades-old Lord of the Rings agreement entitles the studios to create only "tangible" merchandise based on the books, not make digital exploitations nor license such "intangible" things as slot machines and video games.
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