Kiwi director Peter Jackson has won the first round in his fight with Hollywood studio New Line Cinema over profits from The Lord of the Rings. A judge has fined New Line, the film trilogy’s financial backer, $US125,000 ($NZ169,000) for failing to turn over court-ordered documents in the case. The Hollywood Reporter said Jackson’s lawyers might also be allowed to inspect New Line’s files if the studio did not produce several audits within 21 days. New Line must also hire an outsider to collect electronic documents, including e-mails, it said.
Category: PJ New Line
Observant Compa_Mighty has now written in with more fresh Hobbit news. Word reached our ears months ago that Sam Raimi would direct “The Hobbit,” but everything seemed to be in flux. In the last 48 hours word has traveled fast that Peter Jackson and New Line were at least on speaking terms. IESB.net is reporting (no source named so tread with caution) that Jackson and Raimi may be on the project. Don’t believe everything you read but this story makes a lot of sense. It also seems that Bob Shaye may have been hinting at this yesterday when he said, “I really respect and admire Peter and would love for him to be creatively involved in some way in ‘The Hobbit.’ “ Notice he didn’t say he would “direct” the film but did say “involved in some way”. Anyway, stay tuned as more clues are uncovered.
A keen eyed fellow that goes by Ned sent in a very interesting link from the L.A. Times about New Line and some possible fence mending with Peter Jackson. Jackson is obviously well into pre-production on his “Lovely Bones” project but after that, who knows? The story included this juicy tidbit: “Eager to move ahead with “The Hobbit,” New Line has quietly been trying to mend fences with “Rings” filmmaker Peter Jackson, who has sued the company over his share of profits from the first “Rings” films. When asked if it was true that company insiders had been in talks with Jackson’s reps, Shaye replied, “Yes, that’s a fair statement. Notwithstanding our personal quarrels, I really respect and admire Peter and would love for him to be creatively involved in some way in ‘The Hobbit.’ “ To read the whole interesting story go right here.
TORn friend Mark from Chicago sent along this story from the New York Post and it may signal a softening from the New Line brass about Peter Jackson and a future version of ‘The Hobbit’. It may also be an attempt to smooth the ruffled feathers of fans who may have been bothered when the dispute over the future billion dollar film got a bit personal. The story is about New Line in general but Bob Shaye said, ” “There’s nothing I can really talk about except to say that I believe ‘The Hobbit’ will be made,” says Shaye. “I don’t like to have issues with anybody. Any issues with Mr. Jackson, I would prefer to have them closed, rather than open.” ” Read the full story here.
The suit filed by fifteen New Zealand actors over money possibly owed them in a contract dispute involving merchandising has nothing at all to do with New Line’s famous dispute with Lord of the Rings director Peter Jackson according to the actor who instigated the action.
Bruce Hopkins – Gamling
New Zealand actor Bruce Hopkins (Gamling) informed TheOneRing.net exclusively that the whole suit came about because of a clause in his contract that he took seriously enough to bring to the attention of a lawyer.
The process started when Hopkins, aware of a clause in his contract that provided a percentage of merchandising, approached entertainment lawyer Phillip Rosen in Los Angeles and then on legal advice approached other actors who would have a similar contractual clause. After Rosen’s efforts with New Line, the case was taken on by Henry Gradstein, a notable entertainment lawyer who has handled notable royalty accounting cases.
As hard as it may be to believe, this has absolutely nothing to do with Peter and New Line or their current situation
– Bruce Hopkins – Actor (Gamling in LOTR)
“I am a well known litigator who has championed the cause of the little guy,” Gradstein said in a phone interview.
“We thought that case was a just cause. When you have a cause that’s the right cause, and it is fair – it’s a David and Goliath story no doubt.“
A studio insider that spoke to TheOneRing.net on condition of anonymity had an entirely different view of things.
“New Line bet the house on this film and they put literally hundreds of millions of dollars directly into the New Zealand economy.“
“I personally believe all the people associated with this film have been fairly and adequately compensated for their time and effort and that includes Peter Jackson. To sue the studio because the film was as successful is just plain greed.“
The whole process started after Hopkins’ interactions with Lord of the Rings fans, not the powerful film director.
“Quite honestly it was getting out to fan conventions where I saw the dedication of the fans and the amount of merchandise that was being dealt with, that I began to want some indication of how this reflected in terms of the merchandise clause I had in my contract. There were no other residual clauses in the contract so this stuck out for me,” said Hopkins.
Initially his cast mates were slow to join the suit, fearing professional retribution.
“Many of the actors were cynical and almost not interested, and yes, a number of them feared being blackballed, not just by New Line but by local production companies, as well as being ridiculed locally,” Hopkins said from New Zealand.
The story broke when Variety did a story based on the lawsuit filed May 30, in Los Angeles County Superior Court. The lawsuit asks for profits based on the actors’ character’s licenses which were swallowed up by accounting, including “gross participation” fees.
According to Gradstein the legal action will take “about a year” to resolve and the contract is pretty clear. He said in such contracts there is often a provision for a distribution fee but such a provision was not present in the contracts in this case, although New Line reportedly still deducted a significant amount of money.
“The expenses will always be approximately 104 percent (of the income). It’s Hollywood accounting,” Gradstein said in a story by Associated Press.
The expenses will always be approximately 104 percent (of the income). It’s Hollywood accounting
– Henry Gradstein – Entertainment Lawyer
“The contract is so clear,” Gradstein told TheOneRing.net.
Hopkins suspects that the other actors aren’t eager to have their names associated with the press coverage the story is getting.
“If anything, being in New Zealand heightens the chances of being struck out (of acting) as it were. We are a small industry down here and there is little work to go around most of the time so to risk being blacklisted here is a death knell to surviving as an actor locally.“
New Line has a company policy of declining comment on existing litigation.
According to Gradstein each of the actors stands to make different amounts of money in the lawsuit, according to sales of each character’s image.
“Bruce headed the group of actors, Phil Rosen, spent time getting New Line trying to agree so when it was clear that wasn’t going to work they came to me,” Gradstein said. “It took persistence to get it (the case) to me. They did their due diligence.“
According to Gradstein his firm accepts about one of ten cases offered to it.
The suit is at least the third over profits from New Line’s Lord of the Rings films.
Jackson’s own lawsuit against New Line over profits from DVD sales on the “Fellowship of the Ring” DVD went public when Jackson released a letter through TheOneRing.net detailing why the potential “Hobbit” movie was not going to be made by him in the near future.
Producer Saul Zaentz and his Tolkien Enterprises reached settlement with New Line for about $20 million before that dispute reached the legal system.
New Line founder Bob Shaye shows no signs of yielding in the company’s legal squabble with Peter Jackson over profits from “The Lord of the Rings.” In a conversation at AmPav on Tuesday with Variety editor-in-chief Peter Bart, Shaye said the company had already paid Jackson and his wife, Fran Walsh, $250 million in profit participation. The clash happened because “one of us has gotten poor counsel,” Shaye said, without elaborating. Co-chief Michael Lynne struck a more upbeat note. “We do want to settle our dispute and I think we will.” A “Hobbit” pic is still in the plans, both execs were coy about reports that Sam Raimi is being lined up to direct. “There’s never been any announcement,” Lynne said. “Like a lot of people, he might,” Shaye added. [More]