In the absence of defined language in the contract which clearly specifies what is income and what are expenses, I would expect this is going to come down to a definition of both of those terms by armies of very well paid accountants and attorneys. I would expect NL to list every single dollar they have spent on behalf of LOTR in any capacity that it was done. I would expect them to mitigate their income by using every conceivable accounting device that they can get in under New York law, if that is the applicable standard.
In the end, I would not be surprised is NL takes the tact that yes the film did indeed make a profit and stockholders, Jackson and Zaentz did share in the profits HOWEVER the levels of profit did not meet the threshhold of that magic number times the 2.6% in the contract with JRRT.
Or perhaps we will see a out of court settlement. I expect nothing at all to happen with the demand for a stripping of rights from NL. Not one thing.
from WCH
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This provides some wiggle room, as in perhaps the Estate agreeing to allow some studio not connected with NL to buy the rights
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Why would the Estate have any voice at all in which studio gets the HOBBIT or LOTR rights if NL is stripped of them. Those rights will soon revert to Saul Zaentz who owns them and can make that decision on his own. How can the Estate get back what does not belong to them and has not belonged to them for three decades now? Saul Zaentz also claimed to be an injured party at the hands of NL and had to sue them. How can the Estate leapfrog over the rights of Zaentz when he is not the one who injured them?
Or is that what this is all about?