PETER JACKSON - LORD OF THE RINGS IN THE MIDST OF PROFIT BATTLE

Film-maker PETER JACKSON's production company has sued NEW LINE CINEMA over profits from the first film in the LORD OF THE RINGS trilogy.

WINGNUT FILMS alleges in a federal lawsuit filed on Monday (28FEB05) in Los Angeles that New Line and subsidiary KATJA MOTION PICTURES failed to properly calculate revenue - including money from DVD sales - from 2001's THE LORD OF THE RINGS: THE FELLOWSHIP OF THE RING.

The lawsuit doesn't give a specific amount sought in damages but claims the movie grossed more than $314 million (GBP165.2 million) in box office receipts in the United States and more than $556 million (GBP292.6 million) overseas, plus revenue from video and merchandise sales.

The lawsuit accuses the studio of giving affiliates favourable licensing deals. It seeks a court injunction against New Line from reaching deals related to the film with affiliates "without first seeking the most competitive and beneficial deals from unaffiliated third parties in a free and open market".