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It must also be noted that, separate from copyright issues, many characters in American television and film productions are also registered trademarks of the producing company. However, this only requires that fan fiction producers make certain that their work cannot be confused with the trademark holder, and does not claim to be endorsed or produced by them; it does not ban the use of a character any more than the registered trademark status of Coca-Cola prohibits its mention here. Most authors avoid legal trouble by including short disclaimers at the beginnings of stories or chapters.
Also, fan writers argue that their work does not cost the owner of the source material any income, and often acts as free promotion, while fan writers themselves earn no profit. Legally, copyright (and trademark) infringement can still occur even when the infringers do not profit; however, the non-profit nature of fan fiction is important legally, because it limits or eliminates the damages that a court could find and also makes possible some defense against claims of infringement under copyright fair use.
Most major studios and production companies tolerate fan fiction, and some even encourage it. Paramount, for example, has allowed the production of two series of Star Trek fan fiction anthologies, Star Trek: Strange New Worlds, a series of seven anthologies of fan fiction selected by contest, and Bantam's Star Trek: The New Voyages which followed Bantam's Star Trek Lives by reprinting stories from various fanzines.