The US-based developer of the cryptocurrency JRR Token has been prevented from trading by the JRR Tolkien estate.

Lawyers working on behalf of the estate stated that the product infringed on the author’s registered trademarks.

The complaint was filed with the World Intellectual Property Organization (WIPO) within a day of the tokens going on sale.

Steven Maier, an estate solicitor, said: “The Tolkien estate has a duty to protect the JRR Tolkien name and the contents of his much loved books.

“This was a particularly flagrant case of infringement, which sought to gain a financial benefit by associating the cryptocurrency with the JRR Tolkien name and literary works.

“This action sends a strong message that third parties will not be allowed to free-ride on the JRR Tolkien name and books for financial gain.”

The cryptocurrency launched in August this year, having been registered in February, on the websites jrrtoken.com and thetokenofpower.com.

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Included on the site were rings, hobbit holes and a Gandalf-like wizard.

Developers of the token were aiming to “organise the people towards a common goal of making JRR Token ‘The One Token That Rules Them All.'”

This line is a play on words from The Lord of the Rings book and franchise.

Lawyers also claimed that the domain name of the token was “specifically designed to mislead” users into believing it had a legitimate connection to the author and his estate.

Developers countered this by claiming that the name is a “parody” and “not of any purported bad faith”.

Their intention was for JRR to stand for ‘Journey through Risk to Reward’, making reference to the unique form of cryptocurrency. This claim was dismissed by the WIPO.

In a statement the WIPO said: “The respondent does not specify why the disputed domain name is humorous, funny or nail-biting and not just a domain name chosen due to its similarities with teh [Tolkien estate’s] trademarks, to take commercial advantage of its evocation.

There was no doubt the developer was aware of Tolkien’s works and created a website to trade off the fame of these works.”

In total, The Hobbit and The Lord of the Rings have sold an estimated 100 million copies.

It is becoming a trend for new cryptocurrencies to take advantage of popular culture and well-known brands. In October, a currency based on the Netflix show Squid Games scammed users out of money.

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