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KaVir:
Correct. But, the copyright isn't protecting the phrase, it's protecting the book. To use any portion of the book, including short quotes, you have to argue that you're licensed to do so or that it's fair use. I don't believe there's a "small excerpt for any use you want" exemption, and this is clearly not review, commentary, or parody. It's an ad. IANAL, but I don't think it's permissible to lift memorable phrases from creative works and use them in advertising.
Is the ad attempting to leverage off of the public recognition of Tolkien's work? Clearly, yes. Is that one of the primary danger signs for thinking about using something that you are not completely responsible for creating? Yes.
Is it actionable? Who knows. Straight copyright might not even be the only claim: there are plenty of laws against obnoxious advertising practices anf general tort laws.
Stilton
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