Hi,
Yes, technically all fan fiction is in violation of most ULAs and 
copyrights. However, as I said most don't go around rounding up those 
though who create fan  fiction.
Specifically, if you read the Star Wars end user license it is very 
strongly worded saying that any fan fiction if discovered immediately 
becomes the legal property of Lucasfilm Limited, they prohibi tfan 
fiction, etc yet lots of free SW fan fiction exists on the net and 
Lucasfilm while the threat on StarWars.com doesn't really bite. More 
like a paper tiger that could turn into  a real tiger if it felt like it.
 

Christopher Bartlett wrote:
> As a note, while doing research for a project at work, I came to the 
> conclusion that fan fiction is technically a violation of copyright, 
> irrespective of the intention to make money or not, as falls under 
> the right to control how one's characters are portrayed and/or 
> used.  In practice, as Thomas says most copyright holders seem to 
> turn a blind eye (pardon the pun), but this precedent in no way 
> forbids anyone from enforcing their copyright; it's not like patents 
> in that respect.
>   



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