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Lord of the Rings actors sue New Line

LordoftheRings_Boxset.jpgA group of actors from the Lord of the Rings trilogy have decided to sue New Line over missing royalties, sound familiar?

Apparently when they received their royalty statements from New Line they were expecting something a little more than they received, what with all the merchandising that has been going on constantly around them in everyday life.

However despite their 5% of net merchandising revenue that they expected to receive their royalty cheques had nothing on them.

There are still many Peter Jackson haters out there after he sued New Line over the Lord of the Rings royalties, after all isn't he rich enough already? Didn't he get paid loads for the Lord of the Rings trilogy? Well is this maybe some indication that there's something more going on than a disgruntled Director?

The story comes from Variety, and they have the explanation of what has apparently happened.

"What the actors didn't realize is that gross merchandising revenue apparently became "net merchandising revenue" after certain unexpected expenses were deducted.

The biggest of these was a 50% distribution fee that the actors had never seen mentioned anywhere in their contract, according to the lawsuit.

There were also other payments and fees that the actors felt were not "related to the generation of the relevant merchandising revenue."

After looking through the list of charges the actors realised felt that there was just no way that they could ever have received any income from this deal, no matter how much merchandising revenue was raised.

Another bad mark against New Line, and it will be interesting to see the outcome of this in court. I wonder if this means others will become a little more wary of their deals with New Line and perhaps just stretch the chances of The Hobbit being made there a little more?



I've heard bad stories about this sort of thing for years. When negotiating a percentage it HAS to be based on the gross, because their accountants can always find a way to make the net profit seem negligible.


It never ends huh?


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