The Problem With Net Profits Deals: Ask the Tolkien Heirs

Whenever we have clients consult us about a movie, TV, book or other deal where they are supposed to be paid for their work on a net profits basis, our red flags start going up. Here's an example of why that happens to us. As you will see, even after all this time and three hugely successful films, the heirs of "Lord of the Rings" author J.R.R. Tolkien are yet to receive any of the net profits they are entitled to.