The pub won. Rightly so.
As Bb noted, copyright is not really an issue when the relevant rights have been sold off. But, if someone were to breach the Estate's copyright by publishing a slash fanfic or some such for gain, it would be the use of Tolkien's ideas, rather than the incorporation of homosexuality, that would do for them.
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Do you mind? I'm busy doing the fishstick. It's a very delicate state of mind!
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