Quote:
Originally Posted by Worldwalker
I didn't say it butchered the author's work; I said it butchered the author's rights.
Fanfic can be better than the original (when I read fanfic based on corny old TV shows, I see this a lot) and it still violates copyright and trademarks. There are various arguments otherwise, based on various fair use exemptions, but the only ones tested in court have come to naught. It's hard to argue that you have some kind of right to piggyback on someone else's creation.
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I did some research and realized I was wrong earlier. Fanfiction has actually not been tested in court. I am not a lawyer, but its legality seems to hinge on whether fanfic can be considered either transformative or parody, if so then it isn't a violation of copyright.
Referential works like the Harry Potter Lexicon are different type of fan creation and have been ruled on in court. So far the rulings have gone against fans.