[quote name='strummerbs']The main thing to note about fair use is that there is no line, specifically. It's kind of like the Supreme Court's rubric for pornography, "I'll know it when I see it."
Fair use is defined in U.S. Code as exempting from copyright protection limited uses "for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research." 17 U.S.C.A. 107. Certainly, a pure concordance of where various Harry Potter characters, settings, and items appear could be classified as scholarship or research uses, even if no new analysis is provided. Research includes the simple collation of materials, so long as the use is limited.
The main elements used by the court include, "(1) the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work." 17 U.S.C.A 107. None of these elements are determinative, but they serve as a guide for a court in making its determination. So long as the encyclopedia is unduly using Rowling's material to co-opt the market or something of that nature, I'm fairly confident that what this could be properly classified as fair use.[/QUOTE]
Even with fair use taken into account, RDR is still trying to sell (key word here) an encylopedia of Rowling's IP as a product on the market. At the very least, they would need to pay JKR or WB royalties. The online encyclopedia that the author runs does not bring him any revenue (besides ads maybe? I haven't been to the site), thus, there is no problem. But for some schmuck to make money off your creative license is a bit too much to swallow, and understandably so IMO. From what I understand, JKR embraces the fanfiction fanbase. Now what do you think would happen if somebody tried to sell HP fanfiction? Obviously, the hammer would be dropped. I know fanfiction not the same thing as a collection of information, but the basic principle remains the same. I believe JKR and WB are in the right here.