Its great for a fan film. But it seems like they are trying to copy the PJ style and even the voices of the original actors.

I would like to see more official films or fanfilms based on Tolkiens projects. There have been scarce few fanfilms or fanfiction because the Tolkien estate could always get their lawyers to send a cease and desist.

I guess usually as long as no profit is made nothing happens. But there are cases where even non profits get shut down.

Since the Tolkien family is not being paid for the unauthorized use of characters, and adapting a work of his fiction. Also the Sael Zaentz company that holds all film rights under the name tolkien enterprises i am sure will bring the hammer down once they see this film.

They obviously do not want competition in any way when they are busy making the Hobbit films with Del Toro.

There is still that pending legal matter of breach of contract the tolkien estate is rumored to bring against tolkien entrprises and new line for not paying the 8% of royalties due to the estate for films that grossed billions. Christopher Tolkien was not happy with the liberties Peter Jackson took with the material and obviously would be more than happy to prevent the hobbit from ever being released.

Lets say that situation has already been dissolved secretely, he will still never allow anyone to film any part of the silmarillion and has it as a protected work for up to a hundred years.

The only parts of the Silmarillion allowed for use are the bits and pieces in the lord of the rings appendices and the mention of the events of them in the text.