Just a quibble with your wording: Public domain fandoms, like the Bible or Jane Austen, aren't a legal issue if they're monetized, because the original sources are no longer in copyright. Likewise, sometimes the original creators permit commercial publication of fanworks. I believe that the SF author Hugh Howey allowed this at one point, and so do I; my original fiction is issued under a BY Creative Commons license, which permits commercial derivative works.
I realize you may not want to deal with figuring out which fanworks can lawfully be commercially published and which can't (as AO3 clearly doesn't), but maybe tweak the wording of your TOS addition to correctly reflect the legal reality of the situation?
no subject
Just a quibble with your wording: Public domain fandoms, like the Bible or Jane Austen, aren't a legal issue if they're monetized, because the original sources are no longer in copyright. Likewise, sometimes the original creators permit commercial publication of fanworks. I believe that the SF author Hugh Howey allowed this at one point, and so do I; my original fiction is issued under a BY Creative Commons license, which permits commercial derivative works.
I realize you may not want to deal with figuring out which fanworks can lawfully be commercially published and which can't (as AO3 clearly doesn't), but maybe tweak the wording of your TOS addition to correctly reflect the legal reality of the situation?