In general, the $FAMOUS_DEAD_AUTHOR estate can go fuck itself; such things usually exist for rent-seeking and nothing else. This is especially egregious, though, and there's probably a law against making baseless trademark threats in bad faith. Which the Tolkien estate can ignore with impunity because the legal system is scary for most people, and always inconvenient.

In happier news, though, copies of the banned buttons are now on sale from someone else. The Streisand effect works.