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Source: https://writers.stackexchange.com/a/14734
License name: CC BY-SA 3.0
License URL: https://creativecommons.org/licenses/by-sa/3.0/

Elves and dwarves are _all over_ fantasy fiction. Here's [one compilation found by Googling "fantasy novels with elves"](http://www.goodreads.com/list/tag/elves). They are generic mythological creatures. If anything these tropes are overused; Tolkien used them well so his works are the benchmarks against which others are often measured, but he didn't invent them.

The question in your title is a little different. If another author actually _did_ invent a species, you would be well-advised to avoid copying it directly. The Tolkien estate successfully kept the Dungeons and Dragons game from using hobbits; that's why the short-human race there is called "halflings". If you want to use hobbits, kzin, Minbari, or any other clear inventions of specific authors, you should either seek permission (probably hard) or genericize them. Even if you think you could ultimately win a copyright-infringement suit, you're still risking having to spend the time and money defending against it. Is it really worth it? Especially when there's a publisher or studio backing the other party, not just an author acting on his own?

Original score: 6