The Tolkien estate is suing New Line Cinema, claiming that New Line has not paid them a cent, other than the initial upfront payment of $62,000. They claim that New Line owes them 7.5% on all three films' process. Apparently, they have been trying to negotiate a settlement with New Line since the release of the films, but have been unable to settle out of court. New Line has also prevented them from auditing the receipts of the last two films.
http://news.yahoo.com/s/ap/20080211/ap_en_mo/tolkien_lawsuit
If successful, the suit would effectively cancel the upcoming two Hobbit movies.
(So, it's not really Tolkien vs. Jackson, per se, but you get the picture.)
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