Tolkien heirs' court battle over film royalties

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On 19 October, the family will take on Hollywood studio New Line Cinema in a Los Angeles court. At stake is a share of the £3billion receipts generated by the trilogy in cinema and DVD sales.

The legal action, the culmination of a long-running dispute, is being brought by the Tolkien Trust, which is run by the author's two surviving children, Christopher and Priscilla. They claim to "have not received a penny" of royalties.

The lawsuit accuses New Line of "insatiable greed" and engaging in the "infamous practice of creative Hollywood accounting".

If the family is successful, the outcome could block the long-awaited - and eagerly anticipated - cinema adaptation of The Hobbit.

That film, due to star Sir Ian McKellen in a reprise of his role as Gandalf, has been earmarked for filming next year with a general release planned for 2011.

The legal battle centres on Tolkien's decision in 1969 to sign over film rights to United Artists for £153,000.

The family's lawyers are convinced that the trust should now receive a larger amount. The action is being taken jointly with publishers HarperCollins.

Steven Maier, a commercial litigation partner with Manches law firm, said: "The trustees are appalled by New Line's attitude to their legal obligations and are determined to pursue their claims to their rightful conclusion."

New Line's parent company, Time Warner, has refused to comment.