Director James Cameron, hard at work on his sci-fi extravaganza Avatar, is the latest person to comment on the increasingly nasty legal battle between Peter Jackson and New Line over profits from The Lord of The Rings. Jackson, for those who haven’t been keeping up with current events, accused New Line of deceptive accounting practices and demanded that the company submit to an audit. The resulting lawsuit managed to nix any chance of Jackson directing The Hobbit for New Line under their current management and time is running out for the film to be put into production before the rights switch hands again. Already there are rumors that Sam Raimi will be taking over the project before the contract expires in 2009. Premiere Magazine spoke with Cameron about the controversy because Cameron is planning to use Jackson’s Wellington studio to shoot parts of Avatar. [More]

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