Photo: Courtesy of New Line

HarperCollins and the heirs of J.R.R. Tolkien announced today the out-of-court resolution to their dispute with New Line Cinema over the profits from the Lord of the Rings movies (HarperCollins and the Tolkein Trust had previously alleged they were owed $150 million from the film's grosses). Terms of the settlement haven't been disclosed, but Christopher Tolkien's statement hints pretty strongly at what happened: "The Trustees regret that legal action was necessary, but are glad that this dispute has been settled on satisfactory terms that will allow the Tolkien Trust properly to pursue its charitable objectives. The Trustees acknowledge that New Line may now proceed with its proposed films of The Hobbit." Also to proceed: Christopher Tolkien's proposal to buy himself a tricked-out Ferrari. [DHD]