Warner Bros. is being sued for $80 million by the estate of J.R.R. Tolkien over allegations that the studio which is producing "The Hobbit" and "The Lord of the Rings," is exploiting merchandise based on the books.

The lawsuit was filed Monday in U.S. District Court in Los Angeles, according to the Hollywood Reporter. The Tolkien estate and HarperCollins claim that Warner Bros. is not entitled to digital exploitations based on the books.

"The crux of the suit is the estate's contention that a decades-old rights agreement entitles the studio to create only 'tangible' merchandise based on the books, not an 'online slot machine' or other digital exploitations that the estate calls highly offensive," reports THR.

The lawsuit specially refers to an online slot game in which elements of "The Lord of the Ring's" story are presented.

"Not only are gambling services outside the rights granted, but this exploitation of Tolkien's well-loved work has offended and distressed Tolkien's devoted fans, harming Tolkien's legacy and reputation," the Tolkien estate said in a statement to Deadline.com. "The plaintiffs have been compelled to take this action to protect their literary and commercial assets and hope that the dispute will be resolved quickly."

"Lord of the Rings: The Fellowship of the Ring: Online Slot Game" is a slots game hosted at numerous online gambling sites with pictures of the movie's characters Frodo, Aragorn, and Arwen on it.

The game works with real money for spins.

Warner Bros. has not addressed Tolkien's estate lawsuit.

This is the second lawsuit against "The Hobbit" this week. On Monday, animal wranglers alleged that Warner Bros. and New Line Cinema abused animals on the set of the movie and that they are responsible for the deaths of up to 27 animals.

Warner Bros. denied the animal abuse allegations yesterday.

"Warner Bros. Pictures and New Line Cinema join Peter Jackson and the producers of THE HOBBIT in vigorously refuting and condemning accusations of animal abuse on the films," the studios said in a statement.

"The production acted swiftly and responsibly in addressing any incidents involving animals in its care throughout the long filming process, and in fact, measures were taken to protect all farm animals, including those uninvolved with the films," it added.

Warner Bros. also noted the timing of the allegations given the coming release of "The Hobbit," and said the freelance animal wranglers were dismissed by the production over a year ago.

"The Hobbit" an unexpected journey will be released on December 14 in the U.S. Watch the Trailer Below;

Tags: The Hobbit