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[Anne Rice]I wrote this stuff, so no admiring it with fanfic!!!![/Anne Rice]

I don't see why. I'm not aware of any being sold, it is mostly traded on the forums (could be wrong, but as long as it is labelled as fanfic, I still don't see the issue). I know that a lot of TV, movie and authors encourage it. Matthew Reilly often has fan competitions to make a movie trailer for his books using mash-ups. I think it is great to have fans so passionate about your work.
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