New Line Cinema is in the process of securing a licensing agreement for the video game rights to its acclaimed "The Lord of the Rings" film trilogy with the renowned video game company, Electronic Arts.

Following the acquisition of the "Harry Potter" rights earlier this year and the ongoing bidding for "The Matrix," the "Lord of the Rings" franchise stands out as one of the most sought-after gaming licenses in the industry.

Reports indicate that the license fee for "The Rings" is estimated to exceed $10 million, positioning it among the highest costs for video game rights.

Both New Line and Electronic Arts have refrained from commenting on the impending agreement, which could be officially revealed later this month, barring any unforeseen complications. The licensing discussions have grown complex as video game rights now encompass not just traditional consoles like Nintendo and PlayStation, but also personal computer platforms and online gaming. Recently, EA has taken charge of all online gaming operations for America Online.

In the competitive landscape, Activision and European publisher Codemasters were also vying for the license. Meanwhile, Havas Interactive chose to withdraw from the bidding process while addressing legal matters related to their plans for online, PC, and video games based on J.R.R. Tolkien's literary works surrounding "The Lord of the Rings."

A representative from Havas stated that they have sought confirmation from the Tolkien estate regarding their rights to the book. Previously, Havas had to cancel an online multiplayer game titled "Middle Earth," which was set in Tolkien's universe; this issue is currently under litigation.

Filming for the fantasy trilogy is anticipated to conclude by Christmas, with "The Fellowship of the Ring" slated for release in theaters on Christmas 2001, followed by "The Two Towers" in 2002, and "Return of the King" in 2003.

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