Exclusive worldwide rights to motion picture, merchandising, stage and other rights in certain literary works of J.R.R. Tolkien including The Hobbit and The Lord of the Rings were sold by J.R.R. Tolkien himself, to United Artists in 1969, and are currently owned by Middle-earth Enterprises (formerly Tolkien Enterprises), inc., a company controlled by Saul Zaentz until his death in 2014.[3]
United Artists is reported to have paid Tolkien just over £100 000.[4] It is often repeated that Tolkien sold the rights for a 'pittance' in order to pay a tax bill,[4][5] the sum he was paid was approximately equivalent to £1,377,000.00 to £3,842,000.00 in 2015 and in addition to it he retained a 7.5% royalty interest in any future adaptation (transmitted to the Tolkien Estate on his death).[6]
In 1976 United Artists sold most of their rights to Tolkien's work to Saul Zaentz Company, who have licensed all subsequent authorized adaptations of The Hobbit and The Lord of the Rings through Middle-earth Enterprises. However United Artists retains the world distribution rights to film adaptations. These are currently exercised by their parent company MGM, which under contract co-financed the The Hobbit film trilogy.[7]