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Sadly, the original contract with UA, which went to Zaentz and then Embracer, and the license Warner/New Line are using, permits
"to freely adapt, change, transpose, revise, rearrange, add to and subtract from the work or any part thereof. to make interpolations in and substitutions for any part or parts thereof, to make sequels to and new versions or adaptations of the work or any part thereof, to use any part or parts of the work or of the theme thereof or any incidents, characters, character names, scenes, sequences or characterizations therein contained...."
In other words, if they want to make "Elanor Gamgee, Vampire Slayer" and set it in Sunnyvale, California, they can.
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The entire plot of The Lord of the Rings could be said to turn on what Sauron didn’t know, and when he didn’t know it.
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