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https://en.wikipedia.org/wiki/Halfling
As for your other question: Since Skaven is indeed a "real world" name of some places you are certainly able to use it. Connecting it to rats, however, could be interpreted as infringement...and given how protective GW can be it's an option in any case.
Generally, such questions often lead to lawsuits that go on for years and cost an absurd amount of money. So unless you really have to I would not bother with it...and just come up with stuff on your own.
To drive the point home here are three articles concerning lawsuits about the word "sky". Yes, sky, that blue thing above our heads. Should be simple, right? Well...
https://www.bbc.com/news/technology-32593735
https://www.theverge.com/2013/6/30/4480300/microsoft-skydrive-trademark-loss-uk-against-bskyb
https://www.gameinformer.com/b/news/archive/2016/06/19/no-mans-sky-keeps-its-name-after-settling-lawsuit-with-sky-tv.aspx
1. Hobbits: I don't think it'd be a wise idea to use it in any way. Afaik, Tolkien came up with it and it literally means "hole builder" or "hole dweller" from holbytla or something like that.
2. Halflings: what Rinden said about it is true. Tolkien did not come up with the word, but as a professor of languages on Oxford, it's natural that he was more aware of some things. My personal understanding is that the "half" portion refers to height. If an average human is 1.6m, an average halfling would be 0.8m, obviously. Basically, another form of midget.
3. Skaven: You are completely correct except in linking it to rats. DO NOT LINK THAT NAME TO ANTHRO-RATS! If you do that, you are simply provoking GW. Regardless of what you do. But you can create cat or wolf people called Skaven, why not?
4. Khajiit: I had no idea about that overlap. But seeing how their province is literally called "Elsewhere"(="Elsweyr"...I believe this also has an overlap with some book series or something), I wouldn't mind it that much.
I don't know the deal with Tolkien, but I would assume it's probably not a copyright issue considering the amount of other things that were derived from his work. It may be as simple as people not liking the word Hobbit, or a bunch of other reasons. It could also be a case where the copyright holder chooses not to enforce the copyright - someone could hold a copyright, but choose not pursue any legal action related to it.
EDIT: Looked into it, apparently yes it is a copyright issue. Sounds like D&D originally used Hobbit very early on, but changed it to Halflings due to legal issues. Halfling is presumably generic enough as a name that it isn't copyrighted.
Using Skaven as a word is fine. Using Skaven as a race of ratmen derived from Warhammer is not, as long as GW could prove that you infringed on their copyright. There isn't necessarily specific rules to what counts as infringement, but something would have to be fairly far removed from Skaven to be okay, particularly considering how much GW guard their copyrights - i.e. a change in spelling wouldn't work, neither would calling them Skaven and changing their culture.
Note that you can absolutely have a race of Ratmen who act like the Skaven, as long as you a) don't call them Skaven, b) don't try and represent them as being related to WH, and c) don't use characters or concepts directly related to WH.
Similarly to Skaven, as you guys say, the term can be use so long as you don't connect it to ratmen. In this case treemen. Dungeons and Dragon learned this the hard way. I'd read they too had treemen called ents but renamed them to treants. A wholly original word.
However the term treant has been used by several other franchises to also describe a race of treemen. Warcraft is probably the most famous example. But treants also make appearance in the Overlord light novel series. Why can they get away with this?
Cone to think of it - has anyone here played any games in the Dungeons franchise? In the 2nd & 3rd games there are actual "ENTS" - so whats up?
Medieval Fantasy sure is a fickle genre when it comes to stuff like this.
I think you'd have to dive pretty deep into IP law to figure out why Ent was off-limits but Treant has become a generic catch-all, but some of it might just boil down to the fact that someone did want there to be a generic term and were okay with other people using it.
But a few things are clear cut to everyone, mythology names and references are open to all, so if you make a variance of a Mythological race/monster/creature, it should not be claimed. Games workshop actually TRIED to claim Mythology names to their brand/IP but failed miserably. Hence you see them now "renaming" their Fantasy races into names they can lay an IP claim on, such as Dawi (former dwarfs) and so on.
A good suggestion I think to combat any kind of claim on your own (homebrew) setting's creations is to make your world/races/creatures ect. Different by at least 20% that of anything that is known. This is also known as the 20% rule. And the cause why sometimes movies / tv series look so odd if it's of a known franchise (ex. Star trek "kelvin" timeline) but owned by another corporate company.
So in short, Basic Fantasy races / creatures cannot be claimed by anyone, but as soon as they call a basic fantasy race by a special name (Dawi, Skaven, Drucchi) then they may have an IP claim. Savest method is to name your setting's ratmen something different, and make them *at least* 20% different to the Games Workshop version.
Yes it's really annoying, and no these corporates should not IP claim well known Fantasy names and races. But it's better to be save, than sorry. That's what I did with my Dark Elfs for my homebrew DnD themed setting. Name them differently, different history. retain the Skin and Hair color (which is Mythology reference to them, though debated by experts, but w'ever :) _
Thats a pretty good explanation. But I pose another question (or a few). In Norse mythology, there are two kinds of elves. Light elves and dark elves (sometimes called black elves). But Tolkien coined the terms "high elf" , "wood elf" , "deep elf" and even "sea elf" none of those types existed before his works.
You say basic fantasy creatures are okay so long as special names are not used. Are those terms invented by Tolkien not considered "special" or unique to his works? Or is it because they're elves PERIOD, that the applied English word that precedes the word "elf" is not considered unique enough/makes the term claimable? I see high elves everywhere, wood elves too. Name a fantasy series, they probably have at least those two species. Case in point - Warhammer, Elder Scrolls, D&D and so on. I think The Elder Scrolls even has sea elves and deep elves(dwemer aka dwarves)
They're everywhere. But there are a handful of species/terms that I've only ever seen used in one fantasy series, that being Blizzard's (World Of) Warcraft franchise. The elves unique to their imaginary world are known as night elves , blood elves , spider elves and void elves. Would those terms be up for grabs too, just like Tolkien's? I don't see why not. I think D&D has a few unique species too. Grey elves, moon elves, sun elves too many elves etc... same question goes for them too. Like, whats the limit here? If Tolkien's terms can be use by various other creators, do you think some of those'd be safe for use too?
I get not making them exactly like they're depicted in other mediums, but lets say night elves. If I wanted to make them evil instead of good and gave them different features like narrow eyes and eyebrows that don't hang 10 feet off their faces along with a non Asian inspired culture like Warcraft has but I still wanted them to have purple skin, is that considered infringement?
I mean Ariel from Warhammer isn't too dissimilar to the night elves of Warcraft. She has purple skin as well as some "nature-like" features like wings. Night elves from Warcraft often have attachments like that on their bodies, where they're almost one with nature itself. She even allies with the wood elves and the night elves are basically the wood elves of their world.