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Mar 6, 11:30 AM (ET)

By The Associated Press
NEW YORK (AP) - Peter Jackson won't be returning to the Shire any time soon. The Oscar-winning director is planning to film "The Hobbit," the prequel to "The Lord of the Rings," trilogy by J.R.R. Tolkien, but two studios must first fight over legal rights to the film.
Jackson said New Line Cinema has the rights to make the movie, but MGM has the rights to distribute it.
"I guess MGM's lawyers and New Line's lawyers are going to have a huge amount of fun over the next few years trying to work it all out," he told reporters recently in Los Angeles, according to AP Radio. "I'm obviously busy for a couple of years on 'King Kong' so those lawyers can just go at it for a long time."
"The Hobbit" tells the story of Bilbo Baggins, who found the ring and eventually passes it on to his nephew, Frodo Baggins. Frodo's journey to Mount Doom to destroy the ring is the basis for the "Rings" books and films.
Jackson said if he were going to direct the movie, he'd want it to feel like the rest of the trilogy. On Sunday, Jackson won an Academy Award for best director shared the adapted-screenplay award with his two co-writers for the final "Rings" film, "The Return of the King."
"I'd want Ian McKellen to be back as Gandalf, I'd want it to feel like it was part of the same mythology that we've done with 'Lord of the Rings,'" Jackson said.
"The Return of the King" swept this year's Academy Awards, winning all 11 categories in which it was nominated.
Jackson is in the middle of remaking "King Kong," due out next year, starring Naomi Watts.


"News.com.au is reporting that New Line Cinema is currently in talks to purchase the rights to the film adaptation of The Hobbit. There are apparently some difficulties with getting the go ahead from Tolkien's son Christopher, who is executor of the estate. When asked if New Line has approached him about the project, Jackson said he has not ruled it out, but not until after King Kong is done. 'New Line, which spent $US300million ($415 million) making the films, is already planning to continue its Rings success with an adaptation of Tolkien's novel The Hobbit. More difficulties with the Tolkien estate were looming, said Jackson, who added that he would be keen to get involved after he finishes remaking King Kong in 2006. "New Line haven't actually talked to me about The Hobbit. I know there's difficulty about the rights, certainly if they want to talk to me about it I'd be keen," he said.'"


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