Nancy Stouffer
In 1999, American author Nancy Kathleen Stouffer alleged copyright and trademark infringement by Rowling of her 1984 works The Legend of Rah and the Muggles (ISBN 1-58989-400-6) and Larry Potter and His Best Friend Lilly. The primary basis for Stouffer's case rested in her own purported invention of the word "Muggles", the name of a race of mutant humanoids in The Legend of Rah and the Muggles, and Larry Potter, the title character of a series of activity booklets for children. Larry Potter, like Harry Potter, is a bespectacled boy with dark hair, though he is not a character in The Legend of Rah and the Muggles.[ Stouffer also drew a number of other comparisons, such as a castle on a lake, a receiving room and wooden doors.Portions of Rah were originally published in booklet form by Ande Publishing Company in 1986, a company founded by Stouffer together with a group of friends and family. Ande filed for bankruptcy in September 1987 without selling any of its booklets in the United States or elsewhere. Rowling has stated that she first visited the United States in 1998.
Rowling, along with Scholastic Press (her American publisher) and Warner Bros. (holders of the series' film rights), pre-empted Stouffer in 2002 with a suit of their own seeking a declaratory judgment that they had not infringed on any of Stouffer's works. The court found in their favour, stating that "no reasonable juror could find a likelihood of confusion as to the source of the two parties' works".[12] During the course of the trial, it was proven "by clear and convincing evidence, that Stouffer has perpetrated a fraud on the Court through her submission of fraudulent documents as well as through her untruthful testimony", including changing pages years after the fact to retroactively insert the word "muggle".Her case was dismissed with prejudice and she was fined $50,000 for her "pattern of intentional bad fait