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Not sure if this parallels exactly, but Pack Street is considered a Zootopia fanfic even though none of the film's characters appear (there's mention of Bellwether as well as a few references to the concept of carnivores going feral, but that's it). It is stated to take place within the universe of the film, but other than a few minor details, it's pretty much its own thing.
Edited by BoltDMCFor the purposes of sorting into trope example sections, RVB goes into Web Animation and not Fan Works, even though it is technically a fan work.
The line between original fiction and fanfiction can get very blurry, and the distinction itself is a modern concept based on copyright law. For example, practically all of Arthurian Legend is basically fanfic based on some earlier work(s)/legend(s). Paradise Lost? Bible fanfic. The Divine Comedy? Self insert Bible fanfic.
As to where we draw the line in general and how this affects example sorting, I'm not sure there's a blanket answer. If you define it by copyright law, then this results in a split in Land of Oz fanfic where the ones based on the public domain books are not considered fanfic and the ones based on the still copyrighted books are. Considering how the arbitrary the division between those categories is...
- Grampa in Oz (1924) is public domain as of this year, while The Lost King of Oz (1925) is not, but it will be next year
- some books published decades later are public domain simply because the publisher failed to renew the copyright
- what if another copyright extension law is passed?
...a hypothetical rule sorting Land of Oz fic into Fanfic or Literature based on the copyright status of the specific source work(s) referenced... strikes me as incredibly silly.
Anyway, I'd say case-by-case consideration for edge cases is probably the way to go.
Edited by Twiddler^^I remember a discussion of whether Sherlock Holmes works count as fanfiction, but I don't remember where.
Edited by rjd1922 Keet cleanup

From what I've seen, Fan Works seem to be defined as content created using previously established media as its basis. However, that eventually led me to asking myself a question: Where do we draw the line between considering something a Fan Work and considering it its own original work?
For a specific example of my question, there's Red Vs Blue. Red vs. Blue is a machinima (a form of work listed under Fan Works) series that uses Halo as its basis. However, outside of a few mentions of Master Chief and the UNSC, the series is largely its own thing with its own original story, characters and world building. So, do we consider it a Fan Work for being a machinima based on Halo, or do we consider it an original work in spite of that?