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The idea of getting the rights taken away seems to be something that does not pass the smell test. It seems like a convenient excuse just to stop something they never liked in the first place - (Middle-earth movies which supplant the books in the minds of hundreds of millions of people) - but were powerless to change since JRRT himself sold those rights.
Can you cite a precedent where claims such as these were honored in a court of law and rights were stripped?
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Thousands, if I could be bothered. Courts set aside contracts every day when there is material breach in bad faith. Don't make your car payments? Here comes the repo man.
The formula I cite (as I can glean it from the Complaint, which does not have the contract attached) provides for 7.5% of the gross. Nothing gets paid unless and until the gross reaches 260% of production costs, but when that threshhold is crossed the 7.5% is based on the whole kit and caboodle.
It is *not* subject to deductions for distribution, marketing, etc etc etc.