Hobbit IP: Permissions there and back again

Here's a fun, (semi-personal) local story about IP for you. The Hobbit Cafe opened in Houston in 1972 as a uniquely vegetarian restaurant for its first decade. During this time, interest in the Hobbit and Lord of The Rings was much more limited--the first of the live action movies did not come out until 2001. [The 1970s animated movies and series, like Ralph Bakshi's, were cool, but not mega-blockbusters, and didn't have the same effect on the IP's value.]

Still, the owners very responsibly obtained permission from the Tolkien estate to use the Hobbit name and related themes. Decor, menu items, and today merchandise prominently feature characters and settings.

My Hobbit shirt from days of employment; I recommend a Smaug design if you want one.

Across the decades, more Lord of the Rings and Hobbit-inspired restaurants and commercial venues opened in Houston, and around the world. Yet clearly, few of them remain today. For example, Rivendell Grill is long gone.

And why is that? 

It's best understood if I first explain some of the franchise ownership rights. Presently, most of those belong to Middle-earth Enterprises (formerly Tolkien Enterprises), which is a division of the Saul Zaentz Company. New Line Cinema and Miramax own the rights to the movies and the related IP.

A really boring image of the copyright record for the first live-action Lord of the Rings movie

The Tolkien estate retains many rights; when they grant licenses, they can select what licensees may use. Integral to this post, their permissions supersede Middle-earth Enterprises.

So, when the franchise was re-licensed and a new film adaptation released, the IP became a much more valuable commodity owners were not inclined to share. Establishments like Rivendell Grill were contacted and told to shut down or change because they violated the rights of the owners of Lord of the Rings and Hobbit concepts.

The oldest but still live mark on record for the Hobbit word mark related to Lord of the Rings

Records of many lawsuits and and legal disputes over Lord of the Rings-themed names for business, especially called Hobbit, are easy to find. Wikipedia lists several, but none of them mention Houstonian entities. Which, fine, we evidently haven't created any notable enough cases, and for a distinct reason.

This next part is sort of "insider info". I mentioned at the start that this was a semi-personal story; the Hobbit Cafe is near and dear to me for a few reasons. I waited tables there as my first paid job out of college, and yeah, I've heard all the jokes about the good my art history degree was doing, thanks. [It's also where my husband and I met. Ask me in person sometime for that fun story, though it is best told with both of us present.] 

It was during my employment that I learned about the fate of so many Lord of the Rings-themed joints. Evidently, in the early 2000s, the holders of certain rights went on a spree, demanding that establishments without their licensing or permission close. The Hobbit Cafe, fortunately, could produce evidence that they had obtained permission to open a restaurant directly from the Tolkien family and estate. The Hobbit Cafe, thanks to their due diligence and respect for IP, was allowed to remain open. 

That's a lesson for all of us to take away from this. Permission was simple enough to procure over 50 years ago, and stands up to major companies' legal forces. 

But on a final note, Hobbit Cafe seems to have never been granted a service mark for their name. Check out the records here.

On a more final note, I'm not endorsing the Hobbit Cafe and neither is anyone else. This is meant only as a tale to help people understand why permission for IP are so important. My husband and I visited the restaurant recently on the day a judge officially tied our knot, and just like you, I think about IP all the time.

Us hamming it up in the cafe on the day in question. I'm protecting his privacy... he hates it when I use his picture