Updated 19 September 2002, 07.49

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Nancy Stouffer had claimed Muggles was a word she'd thought up for mythical characters in her book The Legend of Rah and the Muggles in the 1980s.

And she said she wrote a colouring book called Larry Potter and His Best Friend Lilly.

JK 'thrilled'

She tried to say some of JK's writing had been copied from her and went to court.

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But a New York court threw out all the claims. It said Stouffer had lied and changed evidence to make her claims stronger.

She was fined £30,000 and even had to pay some of the money it cost JK to defend herself.

JK's agent Christopher Little said: "Ms Rowling is thrilled."

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